Forecasts for financial institutions have to take into account the coming of a new chief executive officer (CEO). Some new CEOs have presented shocking results in their first year. Robust profits of previous years have suddenly evaporated, replaced by marginal profitability or even losses.
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But even when public information is available, they often don’t connect the dots, as independent analyst Hemindra Hazari points out in this example, where a company continued to service one lender’s loans even as it defaulted on all other banks.
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