Sentence examples for risks embedded from inspiring English sources
Thanks to this euphoria, banks misread the risks embedded in complex new financial instruments.
They want large banks to hold capital that meets a certain percentage of assets, plus other risks embedded in their balance sheets.
Why did the ratings agencies fail to detect the true risks embedded in these securities — a failure of intelligence collection as grotesque as any preceding the invasion of Iraq?
WASHINGTON — In 2004, well before the risks embedded in Wall Street's bets on subprime mortgages became widely known, employees at Standard & Poor's, the credit rating agency, were feeling pressure to expand the business.
The call came after regulators proposed a new leverage ratio rule, in an effort to get large banks to hold capital that meets a certain percentage of assets, plus other risks embedded in their balance sheets.
So the finance industry meets the demand by creating new instruments that are designed to be as safe as existing ones (think of those AAA ratings on diversified bundles of loans).Investors do not necessarily think through all the risks embedded in these new instruments (for example, that a national housing bust would render the tranching within CDOs useless) and buy them enthusiastically.
But pushing the larger deficits associated with a growth approach risks embedding inefficiencies and inciting a collapse of confidence in the bond markets on which Spain depends for its large borrowing needs.
However, if there was anyone in the regulatory community who saw the risk embedded in credit rating agencies and their AAA ratings of junk securities, that person kept awfully quiet about it.
Elan's chief executive, G. Kelly Martin, said the deal would help Elan to diversify its business and "should benefit our shareholders by spreading the inherent risk embedded in any one specific asset".
Regulators will find that the risk embedded in GE today will move elsewhere in the financial system.The second uncertainty is how strong GE is without its financial-services arm.
The venture success becomes the most important attribute to determine financial reward in which job risk and pay risk embedded.
