- According to the Senior Supervisors Group, firms that dealt most successfully with the market turmoil of late 2007 demonstrated:
- Better flow of information across the firm and more rigorous internal valuation mechanisms.
- Effective management of funding liquidity, capital and the balance sheet.
- Informative and responsive risk management practices.
- In particular, three business lines where varying practices differentiated performance in response to the credit crunch were: CDO structuring, trading and warehousing; leveraged financing loans; and conduit and SIV businesses.
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