Sixteen real decisions behind Volume II, told from the published record.
Every chapter of Volume II carries an In Practice case: a real organization that took a decision of the chapter's kind, told from its published record. Each case sets out the decision, the method, the result and what it took to make it work, then what Meridian, the book's case company, takes from it and four questions for a board.
The cards give a preview. The full two-page case is in the chapter, after its Worked Example and before its AXIOM Lab.
Before the global financial crisis, some banks came to view funding liquidity as essentially free and its risk as essentially zero, and their business lines behaved accordingly. UBS funded every line of business, proprietary trading included, on the same, relatively favorable terms. When the crisis struck, supervisors found that the firms that fared better had priced liquidity internally, charging their lines for the contingent liquidity exposures they built. Funds transfer pricing became a supervisory expectation. What happens when a shared resource has no internal price?
Company and organization names identify the organizations whose published decisions the cases discuss. They are trademarks of their respective owners; no affiliation with or endorsement by them is implied.
