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Or they may have to take more risk to generate the same returns.
In Europe, too, banks are taking more risk to generate higher returns.
Because it is taking ever more risk to generate the returns demanded by shareholders.
(If there are no losses on individual positions from time to time, odds are he isn't taking enough risk to generate attractive returns).
This suggests that banks are taking more risk to generate the 15% or so in earnings-per-share growth that investors demand.
The question is whether they have been taking undue risk to generate these returns.Being honest about their exposures is not in banks' or rather their managers' interest.
Similar(45)
The top 1% can take greater risks to generate higher returns.
The movie factories are even taking a few gut-wrenching creative risks to generate crowds and start new franchises.
In the third quarter of 2007, institutional securities, which took greater risks to generate revenue, posted adjusted revenue of $4.6 billion.
The column suggested that shareholders should now "press compensation committees to change policies so that executives who take outsized risks to generate fatter pay packages are forced to return some of that money if the gambles go bad".
Acknowledging that bankers earn three times more than their regulators, the report by the influential Group of 30 said that the relationship between the two needed to be overhauled and banks shift their focus away from taking short-term risks to generate bigger profits.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com