The second part of the governance problem – the lack of concentrated creditors – exacerbates this problem, since there is no sophisticated entity with bargaining power that can keep the firm from adopting a shareholder-friendly, go-to-Vegas strategy in the event liability estimates in the first period were erroneous.
Hedge funds are sophisticated entities prone to using creative lending structures, and they are not afraid of taking risk.
Banks have countered that the risks were fully disclosed and that the investors, including pension funds and other institutions, were sophisticated entities.
"Banks, hedge funds, insurers and other sophisticated entities are very eager and ready to begin trading on S.E.F.'s," Ben Macdonald, global head of fixed income for Bloomberg, told the Senate Banking Committee on Wednesday.
As multinational companies have rapidly expanded their operations around the globe, they have increasingly looked for professional service firms that can provide these sophisticated entities with consistent services including legal services across their entire platform.
The supposedly most financially sophisticated entities in the world -- in the core of their expertise, evaluating credit risk -- did not undertake the most basic and essential step to evaluate the most dangerous credit risk.
For storm-stricken entrepreneurs, simply owning coverage only counts for so much when the entity writing the checks is a sophisticated financial institution looking to levitate its profits by curbing payouts.
An entity said to be a woodworking shop, for example, had ordered a sophisticated American machine for making metal parts.
I'm a sophisticated person.
A sophisticated, even regal, collection.
Hearth attracts a sophisticated sort.
