Blog - Mahony Partners

Nov

2012

Update: The Investment Banking Reformation

Financial Services, Taking & Managing Risk

The investment-banking reformation is picking up steam, with converts joining its ranks by the day. And like the Protestant Reformation in the 16th century, it promises to be tumultuous and far-reaching, while leaving the promise of heaven just as uncertain. (more…) Read More

Nov

2012

California Smokes It: A Carbon Success Story

Climate Change, Taking & Managing Risk

Although largely overlooked by the media, California recently launched its ambitious carbon-trading program, holding a successful auction of carbon permits that raised nearly $300 million. Of course, had the auction failed it likely would have made the front pages, but its little-noticed triumph shouldn’t obscure its significance as a major step forward for the carbon market. It is a success story with lessons for both policy-making and risk communication. (more…) Read More

Nov

2012

What’s the Next Act for Investment Banks?

Climate Change, Financial Services, Taking & Managing Risk

Three recent deals involving investment banks suggest a reshaping of the industry is underway, but beyond the perfunctory coverage of their press releases the deals haven’t drawn much attention. But each says something significant about where the industry has been – and where it might be headed. (more…) Read More

Nov

2012

It’s Lights Out for Mike Hervey

Crisis

The resignation of Mike Hervey, the embattled chief executive of the Long Island Power Authority, ended for the moment the brutal headlines and fierce attacks on the utility from New York’s elected officials. At first glance, Hervey’s exit seems to follow a familiar narrative: a company stumbles badly in a crisis and the CEO is forced out. But it wasn’t LIPA’s struggle to turn on the lights that sealed Hervey’s doom. It was bad communication. (more…) Read More

Nov

2012

Ignoring Electoral History

Elections

A few months before the election, a senior Republican warned the GOP could lose the presidential race by a wide margin unless it moderated its stand on issues like climate change and immigration to appeal to independent voters. In the aftermath of Mitt Romney’s defeat, it looks like a prescient call. Except the official wasn’t talking about Romney in 2012. He was talking about McCain in 2008. (more…) Read More

Oct

2012

Carbon, the Next Emerging Market

Climate Change, Financial Services, Taking & Managing Risk

It’s easy to dismiss the carbon market as a passing fad or an artifact of a more optimistic, pre-recession world. Yet carbon trading continues to grow, following a trail blazed by another asset class that once seemed obscure and risky but is now a cornerstone of the investing world: emerging market bonds. (more…) Read More

Oct

2012

Joe Girardi’s Lessons for CEOs

Taking & Managing Risk

If ever there was a guy who might want to disappear after a disaster, it’s Joe Girardi, manager of the New York Yankees. His team lost the American League Championship in a humiliating four-game sweep – the team’s first in thirty-six years. But instead of hiding away until spring training, Girardi went public. It's a lesson in risk communication many CEOs could learn. (more…) Read More

Oct

2012

Google’s Earnings Goof

Crisis

It’s embarrassing anytime a company’s earnings are released accidentally. But when the company is a giant known for its savvy technology skills, well, it’s a calamity. Amid the morning-after explanations, several questions remain unanswered. (more…) Read More

Oct

2012

Vikram Pandit Exits Citigroup: A Quick Take

Crisis, Financial Services

Here are four quick observations following Vikram Pandit’s surprise resignation as Citigroup CEO: 1. The bank deserves high marks for projecting a positive and consistent message from what was surely a contentious and tense situation. Abrupt CEO resignations come amid difficult board meetings, harsh words and hard negotiations. But this morning’s news release was solid and on-message, with an emphasis on Citi’s progress under Pandit’... Read More

Oct

2012

Pressure Mounts for State Street

Crisis, Financial Services

Investors are growing impatient with the slow pace of the turnaround at State Street Bank. The bank’s stock price has barely budged in three years, but its senior executives have reaped princely sums – just the sort of thing to set investors’ teeth grinding. The bank’s poor performance is compounded by poor communication. (more…) Read More