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Equity in sentence

1327 examples of Equity in a sentence

The ability to use funds to inject equity into the banks was not part of the bill presented to the US House of Representatives.
So we organized for Representative Jim Moran to ask House Financial Services Chairman Barney Frank in a pre-arranged question whether it was in the spirit of the TARP legislation to allow the Treasury to use taxpayers’ money in the form of equity injections.
A few months later, when President Barack Obama’s administration arrived, one of us (Soros) repeatedly appealed to Summers to adopt a policy of equity injection into fragile financial institutions and to write down mortgages to a realistic market value in order to help the economy recover.
The equity injections were accompanied by restrictions on executive pay and dividends.
And leading bank executives still insist that they should be allowed to run highly leveraged global businesses, in which they are paid based on their return on equity – unadjusted for any risk.
In their view, the big banks should be funded much more with equity – perhaps as much as 30% of their capitalization.
Kashkari is now proposing exactly the right approach: to hold public conferences and extensive discussions to evaluate whether large banks should be broken up, whether they (and other financial institutions) should be forced to fund themselves with more equity and less debt, or whether there should be a debt tax to discourage excessive leverage.
Ensuring fairness and equity are important, to be sure, but so is eradicating poverty and improving opportunities for the middle class.
Nongovernmental actors have long understood that multinational corporations are vulnerable to having their brand equity diminished through “naming and shaming” campaigns.
As the real economy strengthens, equity values – which, for a time, seemed disconnected from fundamentals – are increasingly being validated.
Hard-pressed American households slashed their savings rates, borrowed against their home equity, and increased their debt to maintain consumption, contributing to the housing and credit bubbles that burst in 2008, requiring painful deleveraging ever since.
Exhibit A for Surowiecki is Stephen Schwarzman, the chairman and CEO of the private equity firm the Blackstone Group, whose wealth now exceeds $10 billion.
Sovereign interest-rate spreads have been well-behaved, the euro has strengthened, and equity markets have risen robustly.
And there are other channels besides the real interest rate: the exchange rate, equity prices, the real-estate market, and the credit channel.
When its equity and property bubbles burst in the early 1990s, the keiretsu system – “main banks” and their tightly connected nonbank corporates – imploded under the deadweight of excess leverage.
And when things go well, a highly leveraged enterprise – a company or your house – will show a great return on equity.
And, because large financial firms do very well with a great deal of leverage, they continue to devote abundant lobbying resources to resisting efforts to ensure that they are better capitalized (with more shareholder equity relative to their total balance sheets).
Entrepreneurs will start new companies, and they will fund their risk-taking with equity investments provided by venture capital funds.
The Impotence of the Federal ReserveCAMBRIDGE – The United States Federal Reserve’s recent announcement that it will extend its “Operation Twist” by buying an additional $267 billion of long-term Treasury bonds over the next six months - to reach a total of $667 billion this year - had virtually no impact on either interest rates or equity prices.
Across virtually all the major indicators – including equity and housing price runs-ups, trade balance deficits, surges in government and household indebtedness, and pre-crisis growth trajectories – red lights are blinking for the US.
If China’s traditional and shadow banking systems end up holding loans amounting to more than 300% of GDP, then somewhere there will be companies, households, and government entities with bank deposits or other fixed-income assets equal to over 270% of GDP (with the other 30% or so being investments in bank equity).
Financial reforms, including scrapping the tax subsidy for debt, would encourage equity investments in the real economy.
Participating in these write-offs would put huge strain on the Eurosystem (the ECB and the central banks of the eurozone member states), which has only around €500 billion in equity capital.
These subsidies are dangerous; they encourage excessive risk-taking and very high leverage – meaning a lot of debt relative to equity for each bank and far too much debt relative to the economy as a whole.
Beyond short-term fixes, the main priority must be to encourage a resumption of savings flows across Europe, but this time in the form of equity, not bank deposits and loans.
Oddly, the European Investment Bank, the EU’s financial arm, is authorized to provide only loans and guarantees, not equity investment.
At the same time, China’s corporate sector relies excessively on debt financing, rather than equity.
Both sums dwarf the sums controlled by hedge funds and private equity groups.
And China, when it took a 10% stake in the US private equity group Blackstone, eschewed any voting rights in the company’s management, perhaps as a way of keeping US financial regulators happy.
How might equity prices or bond yields be distorted by $200 billion gorillas that need to invest $4 billion per week?
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