Summit Notebook

Angelides: People make mistakes, take Alan Greenspan and Captain of Titanic

April 29, 2010

Phil Angelides, Financial Crisis Inquiry Commission chairman, says he’d rather see some taking of responsibility than hear another “I’m sorry.”

Restructuring calls heat up

September 30, 2009

After a cool few months, the phones are heating up again for restructuring advisors. 

Zombie companies

September 30, 2009

In zombie films, the dead walk the earth and slowly annihilate the living. Such a frightening prospect may be in store for Europe, the Reuters Restructuring Summit was told.

Tinkering whilst debt burns

September 29, 2009

What have Liverpool Football Club, French building materials firm Materis and German forklift truck maker Kion got in common?

“Rich, retired and gone”

September 29, 2009

Veteran insolvency expert Nick Hood gave the restructuring summit a sobering reminder of the shortcomings of corporate finance.

Welcome to the 2009 Reuters Restructuring Summit

September 28, 2009

 

 

 

The U.S. recession and global credit crisis pulled a stunning array of corporate giants into bankruptcy court this year. Automakers General Motors and Chrysler, real estate company General Growth, and chemicals maker Lyondell all sought protection from their creditors after being brought down by rapidly changing economics and customer demands. 

AUDIO-”Lost Decade” is not in the cards for U.S. economy — Sun Capital

By Ed Tobin
September 24, 2008

talarico.jpg

Enough with the view that the current credit crisis will drag the U.S. into a “lost decade” similar to the one that Japan suffered in the 1990s, says Gary Talarico, managing director of Sun Capital Partners. 
 
Talarico lived in Japan for 12 years and worked with Ripplewood Holdings as an adviser on the hugely profitable Shinsei Bank rescue deal. He says the U.S. is much more willing to take the pain of the crisis and emerge much stronger because of it. 
 
Japan’s strategy to cope with their crisis leaned more to the left, Talarico told the Reuters Restructuring Summit in New York. And because of that, the Japanese economy stagnated for years.
 
As for what is happening in the U.S. right now? 
 
“Creative destruction is a good way to describe it,” Talarico said in reference to the failure of Lehman Brothers, the buyout of Merrill Lynch and the government takeover of AIG. 
 
“These things have to happen. I’m very sad about Lehman. I worked there for 15 years and I absolutely loved the firm. It’s a possibility that if the government moved faster, they might still be alive today. A lot of things might be different. Unfortunately, it is very hard to see the future.
 
But things have to fail, he said.
 
“There is no doubt that reckless things were done. Reckless people have to take their pain. But what we can’t afford is a systemic meltdown. It has global implications as well. So, unfortunately, tax payers have to carry some of that burden.”
 
To hear Talarico’s view on why the U.S. is not headed for a Japan-style slowdown, click here

AUDIO-$700 bln bailout sparks inflation, moral hazard fear

By Ed Tobin
September 23, 2008

fridson.jpgMartin Fridson — known as the “Dean of the high yield bond market” — is concerned about what we don’t know when it comes to consequences of the U.S. federal government’s $700 billion bailout to help move toxic mortgage debt off their balance sheet.
 
Fridson, the Chief Executive of Fridson Investment Advisors,  told the Reuters Summit on Tuesday that beyond the unforeseen consequences that scare him most, moral hazard and inflationary pressures from the historic government action top his list of concerns. 
To listen to Fridson’s comments, click here