Credit Engineering for Bankers, 2nd Edition

Foreword

When I wrote the foreword for the first edition of this book in 2002, we had just exited the “tech wreck” and a shallow U.S. recession. I emphasized then that “the new economy did not arrive in the way some pundits predicted at the end of the last century. Instead of perpetual economic growth and the death of business cycles, we are in the midst of rapidly evolving markets and rapidly changing corporate structures.” The global economy has only become more unstable.

The demise of Lehman Brothers in 2008 marked the return of the business cycle with a vengeance. This time around, banks and governments were at the center of both the crisis and the cleanup. Managing bank risk has become a key priority for both bank executives and regulators. ...