Client feasted a shade too much on risk with no eye on the collateral? Credit burn? Black hole in the balance sheet?

This three step guide to Successful Underwriting may help.

Step 1:
Keep some noise about the greater good, the necessity to raise capital in an orderly fashion and the dangers of volatility during cash calls. Don't mention why your client needs to beg reluctant shareholders unwilling to take up the rights to do so.

Step 2:
Have PR call the Financial Services Authority knowing inaction is not an option for them (generally only a choice when it's not too late to take action) and studiously ignore all references to your insurance obligations towards rights left on the shelf.

Step 3:
Keep the aide-memoire below handy

Related articles:
FSA may restrict short-selling of shares during rights issues
FSA Forces Disclosure of Short Sales in Rights Offers
Cleaning up the shorts, FSA-style
FSA to force short-seller disclosure to stop abuse
FSA tightens short-selling rules

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