Financial Services Firms

Indispensable coverage of new federal regulatory reforms and
federal financial issues

An essential guide covering new federal regulatory reforms
and federal financial issues

Financial Institutions, Valuations, Mergers and Acquisitions,
Third Edition presents a new regulatory framework for financial
institutions in the post-bailout era.

• Provides valuable guidance to assess risks, measure performance
  and conduct valuations processes to create shareholder value

• Covers the protection of other stakeholders, including
  customers, regulators, government, and consumers

• Offers an up-to-date understanding of financial institutions,
  their challenges, and their opportunities in the
  post-Sarbanes-Oxley era

Over the past decade, substantial changes have taken place in
the structure and range of products and services provided by the
financial services industry. Get current coverage of these changes
that have transformed both traditional organizations such as banks,
thrifts, and insurance companies, as well as securities providers,
asset management companies and financial holding companies with the
up-to-the-minute coverage found in Financial Institutions,
Valuations, Mergers and Acquisitions, Third Edition.

Autorentext
ZABIHOLLAH REZAEE, PhD, CPA, CFE, CMA, CIA, CGFM, is the Thompson-Hill Chair of Excellence and Professor of Accountancy at the University of Memphis and has served a two-year term on the Standing Advisory Group (SAG) of the PCAOB. He is a prolific writer, having published six books and 190 articles in a variety of accounting and business journals.

Zusammenfassung
Indispensable coverage of new federal regulatory reforms and federal financial issues An essential guide covering new federal regulatory reforms and federal financial issues

Financial Institutions, Valuations, Mergers and Acquisitions, Third Edition presents a new regulatory framework for financial institutions in the post-bailout era.

• Provides valuable guidance to assess risks, measure performance and conduct valuations processes to create shareholder value
• Covers the protection of other stakeholders, including customers, regulators, government, and consumers
• Offers an up-to-date understanding of financial institutions, their challenges, and their opportunities in the post-Sarbanes-Oxley era
  Over the past decade, substantial changes have taken place in the structure and range of products and services provided by the financial services industry. Get current coverage of these changes that have transformed both traditional organizations such as banks, thrifts, and insurance companies, as well as securities providers, asset management companies and financial holding companies with the up-to-the-minute coverage found in Financial Institutions, Valuations, Mergers and Acquisitions, Third Edition.

Inhalt
Preface xi Acknowledgments xvii

PART I: FINANCIAL SERVICES INDUSTRY: ITS MARKETS, REGULATIONS, AND GOVERNANCE 1

Chapter 1: Fundamentals of the Financial Markets and Institutions 3

Introduction 3

Financial Markets 3

Financial Information and Capital Markets 4

Financial Crisis and Financial Regulatory Reforms 5

Types and Roles of Financial Markets 15

Financial Services Firms 21

Conclusion 24

Notes 25

Chapter 2: Introduction to Financial Institutions 27

Introduction 27

Landscape of the Financial Services Industry 27

Structural Changes in the Financial Services Industry 28

Historical Perspective of American Banking 42

Current Trends in the Financial Services Banking Industry 43

Regulatory Reforms 46

Valuation Process 55

Conclusion 56

Notes 57

Chapter 3: Corporate Governance 61

Introduction 61

Corporate Governance Effectiveness 62

Global Regulatory Reforms 66

Sarbanes-Oxley Act of 2002 70

Dodd-Frank Act 74

Corporate Governance Functions 75

Board of Directors and Its Committees 78

Audit Committee Roles and Responsibilities 80

Executive Compensation 84

Conclusion 86

Notes 86

PART II: THE FOUNDATION: FINANCIAL INSTITUTIONS, VALUATIONS, MERGERS, ACQUISITIONS, AND REGULATORY AND ACCOUNTING ENVIRONMENT 89

Chapter 4: Overview of the Valuation Process 91

Introduction 91

Valuation Services 92

Valuation Profession 94

Valuation of the Business 97

Attracting Valuation Clients 105

Accepting a Client 109

Pricing Valuation Services 111

Importance of the Engagement Letter 112

Planning an Appraisal Engagement 114

General Planning 118

Appraiser's Traits 121

Appraiser's Due Diligence Process 124

Risk Assessment 125

Conclusion 126

Notes 126

Chapter 5: Overview of Mergers and Acquisitions 127

Introduction 127

Historical Perspective of Mergers and Acquisitions 128

Recent Trends in Mergers and Acquisitions 130

Regulations of Bank Mergers 136

Players in Mergers and Acquisitions 142

Motives for Business Combinations 146

Determinants of Mergers and Acquisitions 148

Perceived Shortcomings of Mergers and Acquisitions 152

Studies on Mergers and Acquisitions 155

Leveraged Buyout 159

Post Mergers and Acquisitions Performance 160

Shareholder Wealth and Effect of Mergers and Acquisitions 161

Joint Ventures and Strategic Alliances 162

Ethics in Mergers and Acquisitions 163

Governance in Mergers and Acquisitions 164

Mergers and Acquisitions Process 165

Conclusion 181

Notes 183

Chapter 6: Regulatory Environment and Financial Reporting Process of Financial Institutions 187

Introduction 187

Consolidation 187

Regulatory Environment 192

Bank Supervision 198

Financial Modernization: The Gramm-Leach-Bliley Act 205

Financial Reporting Process of Financial Institutions 208

Statement of Financial Accounting Standards No. 115 212

Auditing Proper Classifications of Marketable Securities 214

Tax Consideration of Fair Value 215

Recent Development of Fair Value Accounting 218

Financial Reporting Requirements of Financial Institutions 222

Corporate Governance of Financial Institutions 228

Conclusion 237

Notes 238

PART III: FUNDAMENTALS OF VALUATIONS: CONCEPTS, STANDARDS, AND TECHNIQUES 241 **Chapter 7: Value and Valuation: A Conceptual Foundation 243<...