Banks Embracing Blockchain to Manage Foreign Exchange

CFO reported that banks are increasing their use of blockchain technology, in part, because it enables them to more efficiently manage foreign exchange transactions.

Role of CFO Changes When a Private Equity Firm Buys a Company

In an article post on its website, notes that when a private equity firm buys a company, the expectation of the resident CFO will likely change depending on the health of the company.

CFO: Cheap Debt Drives Up LBO Valuations

CFO reported that despite a sluggish M&A market, leveraged buyout valuations hit their highest level in more than a year in June.

CFO: Better Loss Model May Have Prevented Bank Failures

CFO reported that the accounting model banks use to set reserves for loan losses contributed to the large number of community bank failures during the financial crisis, citing a new report from the GAO.

CFO: Systemic Financial Crisis on the Horizon?

A recent article on noted that according to the Bank for International Settlements, when the amount of credit granted by banks and nonbanks is out of proportion with economic growth, a systemic financial crisis is on the horizon.

CFO: Are Private Companies Gearing Up to Borrow?

An article posted on cited a report that indicates private companies are less likely to default on debt, making them well-positioned to secure loans for expansion.

CFO: Big Banks Not Ready to Stand on Own

CFO reported that new Senate legislation and a report from the inspector general of TARP address the unsolved problem of U.S. megabanks deemed “too big to fail.”

CFO: Reform Panel Says Bankruptcy Fees Out of Control

CFO, reporting on a recent panel of the American Bankruptcy Institute, said the high fees debtor companies pay to lawyers and professional services firms damage the filing company’s value and investor recoveries.

CFO: Leverage Ratios Surge at Large Companies

CFO reported that more than 350 U.S. firms now have a thinner earnings cushion to cover the debt on their balance sheets.

CFO: Regulators Hoist Bar for Leveraged Borrowers

CFO reported that by setting new standards for bank underwriting, the Fed, FDIC and OCC ensure private-equity firms and companies will have to meet higher standards when seeking buyout loans.