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Shrinking capital is dangerous.
Despite its rapidly shrinking capital base and the government's continuing inquiry, SAC is putting up a confident front.
"Everyone is going to be cutting staff and shrinking capital commitments but the Europeans are doing it more," Mr. Kotowski said.
Bankers are paralyzed by fear of further loan losses and shrinking capital that might subject them to regulatory penalties — or worse.
Even so, concerns are growing about the threat of a credit crunch, as conditions tighten in America's corporate-bond market.German banks look shakier, with poor profitability and shrinking capital as share prices have fallen as in Japan.
WASHINGTON (Reuters) — The mortgage finance giant Fannie Mae announced a management shake-up on Wednesday in an effort to come to grips with mounting credit losses and a shrinking capital base.
Similar(52)
Since taking the helm of UBS in 2011, Mr. Ermotti has been seeking to reduce costs by eliminating jobs, shrinking capital-intensive trading operations and repairing the bank's reputation after a string of scandals.
The notion of shrinking the capital and reviving provincial cities dates back to 1987.
Although conservatives often insist that the 1 percent's richesse doesn't come out of the pockets of the 99 percent, that assertion ignores the fact that labor's share of gross domestic product is shrinking while capital's share is growing.
"They were buying back stock to shrink the capital, so the return on equity would go up.
In 2007, when FAS 157 was first passed, one economist estimated it would shrink bank capital by at least $100 billion.
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