When someone in the village sets up a canteen many others copy irrespective of the size of the market. Similarly, when one sets up a grog place, a few more spring up. Taxi business is the same. It’s a herd mentality. Why don’t we diversify and synergize? Take time to innovate. There are many possibilities out there.
Their balance sheets were stuffed with mark-to-model assets, massive undisclosed contingent exposures, and debt classified as regulatory capital. Annual reports ran over 400 pages in some cases, leaving investors exhausted but no better informed. In the past few years, there have been some improvements, including better accounting for off-balance-sheet securitisations, and enhanced disclosures of credit risk and the transfers of financial assets.