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As a result, capital becomes scarce in deregulating industries, and conserving capital during the early years is essential for survival.
"This team will be responsible for meeting the dual objectives of conserving capital and controlling credit losses while Fannie Mae continues to provide crucial liquidity to the U.S. housing and mortgage markets," Mr. Mudd said.
After adopting a policy of conserving capital and being selective about the type of new business it writes, Pru raised its dividend by 5% to 6.29p, in contrast to Legal & General and Aviva, which both reduced their dividends when they reported interim figures last week.
Yesterday, Merrill Lynch released a bulletin on Webvan's decision to delay its expansion plans, saying that while analysts there supported the notion of conserving capital financing and focusing on profitability, they were "discouraged by the rescheduled launch of Webvan's two newest" distribution centers.
The new team is charged with executing Fannie's twin goals of conserving capital and controlling credit losses.
General Electric is a good example because it is paying 100% of its earnings at a time when it should be conserving capital.
Similar(50)
"We will conserve capital," Mr. Mudd said.
4. Conserve capital to maintain flexibility.
Needing to conserve capital and fearful that other firms might collapse soon, they largely stopped lending.
Financial institutions need to conserve capital, so they raise prices, tighten standards and sell foreclosed properties quickly.
Banks will seek to conserve capital, not find ways to run it down.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com