商务英语阅读王关富Unit10banking课后

Chapter10TheAlchemistsofFinanceExercises1.QuestionsonthetextWhat’sthemaindifferencebetweencommercialbanksandinvestmentbanksIntoday'sbusinessenvironment,themainbusinessofcommercialbanksistocollectdepositsandmakeloans,whilethatofinvestmentbanksistounderwritestocksandbondsandadvisecompaniesonmergersandacquisitions.WhydoinvestmentbankstrytokeepquietabouttheirbigprofitsInvestmentbankstrytokeepquietabouttheirbigprofitsfortwomajorreasons:first,theyareundermorescrutinybyregulatorsandinvestors;second,privateequityandhedgefundshaveovertakentheminraisingmoneyandmakingexcessivebets.3)Whatchangeshavetakenplaceinthefinancialmarketssincethe1980sThemainchangessince1980shavebeentherapidgrowthoffinancialinstrumentswithunprecedentedbreadth,depthandrichness,broughtoutbytechnologyandinnovation.Examplesofthosefinancialinstrumentsarepublicandprivatedebtsecuritiesandderivatives.WhydobankersandregulatorsworryaboutapossiblecollapseofaninvestmentbankTheyworryaboutapossiblecollapseofaninvestmentbankbecausesuchaneventwillhaveseriousimplicationsforthewholefinancialsystem,anditisvitaltoknowhowsuchinstitutionsevolve,howtheyhandlerisksandhowwellthoserisksarespreadaroundthefinancialsystem.5)WhichthreefactorscanexplainthehugeprofitforinvestmentbanksThosefactorsare:first,thealchemist'strickofturningdebt(mostlyleaden)intoderivatives(mostlyliquid);second,theemergenceofanewclassofleveragedclient(hedgefundsandprivateequity);third,seekingoutnewcapitalmarketsandclientsaroundtheworld.Meanwhile,inallthesepursuitsthebanksarenowusingtheirownmoney,todifferingdegrees.6)Whatdoestheexpression“thewildeast”refertoThatexpressionreferstothenewmarketsemerginginEuropeandAsia.Theintroductionoftheeuroin1999andtherapidgrowthofeconomiesinthoseregionshaveattractedinvestmentbanks.7)WhatmakesLondonanimpressiverivaltoNewYorkasaglobalfinancialcenterLondonhasbecomeanimpressiverivaltoNewYorkasaglobalfinancialcenterbecause:first,Londontradesawiderangeofassetsandisregulatedonthespot;second,LondonisahubforEuropeandcontinentEuropeancountriescanraisecapitalthere;third,LondonisalsoregardedasaspringboardforemergingmarketssuchasChinaandRussia.HowdoinvestmentbanksmanagetherisksInvestmentbankstrytofindthemosttalentedpeopletohandletheintricateassets;theymeasurethecorrelationsbetweendifferentfinancialinstrumentsinanattempttospreadrisk;theyinvesthundredsofmillionsofdollarsayearintechnologiestomeasureandstress-testrisks;theyalsotrytoboosttheirrisk-weightedcapital.Accordingtothetext,what’stherelationshipbetweenrevenueandriskinfinanceTherelationshipbetweenrevenueandriskisfundamentalinfinance.Risk-takingisawardedbypossiblehighrevenue.Lowriskoftenmeanslessrevenue.However,inordertogainmorerevenue,youneedtotakemorerisks.Youshouldcarefullycalculatetheriskandbalanceitagainstrevenuebeforehand,oryouwillpayahighpriceforfoolishinvestmentbet.Whichoneismoreimportanttothegrowthofthefinanceindustry,innovationorregulationBasedonthetext,bothinnovationandregulationarevitaltothehealthygrowthofthefinanceindustry.Withoutinnovation,investorshavefewerplacestogainreturnsontheirmoneyandthoseseekingmoneywouldhavemuchmoredifficultiesinobtainingit.Thusinnovationbooststherapidgrowthoffinanceindustryandbringsbenefitstomorepeoplebothindevelopedcountriesanddevelopingcountries.However,innovationwithoutproperregulation,suchasthesecuritiesthatnooneknowshowtoexactlymeasuretheirrisk,couldleadthegrowthofthefinanceindustrytoadisastrousend.2.Fillineachblankofthefollowingsentenceswithoneofthephrasesinthelistgivenbelow:1)Thegovernmenthastakenmanymeasurestobringdownthepricesofoil.2)Employeesareaskedtokeepquietabouttheiryear-endbonus.3)Regulatorsdemandthemonopolycompanytosplitintosmallerentities.It’sreportedthatChinaTelecomplanstospinoffitsnetworkservicesunitinHK.5)Thetraffichadseizedupformilesbecauseoftheaccident.6)Accordingtothoserepresentatives,newforcesareatworkintherefiningindustry.Weshallneverknowhowshemanagedtoacquireherpromotion;thereisnowaytoaccountforit.8)AnationwidelawaimedatstampingoutpassivesmokinginpublicspacesinSwitzerlandcameintoforceonSaturday.9)Innovationswillbringaboutdramaticchangesinthisindustrialsector.10)Iwouldsaythat,onbalance,ithasn'tbeenabadyear.3.MatchthetermsincolumnAwiththeexplanationsincolumnB:AB1)liquiditycrisisa)abankthatprovidescheckingaccounts,savingsaccounts,andmoneymarketaccountsandthatacceptstimedeposits.62)leveragedbuy-outb)acompanyissuescommonstockorsharestothepublicforthefirsttime.53)creditcrunchc)thesituationinwhichabusinessexperiencesalackofcashrequiredtogrowthebusiness,payforday-to-dayoperations,ormeetitsdebtobligations

whentheyaredue,causingitto4)over-the-countersecurities

default.d)

1the

acquisition

of

anothercompanyusing5)initialpublicoffering

asignificantamountofborrowedmoney(bondsorloans)tomeetthecostofacquisition.2e)afinancialinstitutionthatassistsindividuals,corporationsandgovernmentsinraisingcapitalbyunderwritingand/oractingastheclient'sagentintheissuanceofsecurities.86)commercialbankf)anaggressivelymanagedportfolioofinvestmentsthatusesadvancedinvestmentstrategiessuchasleveraged,long,shortandandderivativepositionsinbothdomesticinternationalmarketswiththegoalofgeneratinghighreturns.97)stresstestg)asharpincreaseintheinterestratesandastrongdecreaseinallocatedcredits.38)investmentbankh)aprocessthatmeasureswhetheroneinstitutionhasadequatecapitaland/orassetsadversetorespondeffectivelytovarious,scenariosusuallypresentedbyacomputerprogram.79)hedgefundi)securitiestradedinsomecontextotherthanonaformalexchangesuchastheNYSE,etc.410)riskmanagementj)theidentification,assessment,andprioritizationofrisksfollowedbycoordinatedandeconomicalapplicationofresourcestominimize,

monitor,

and

control

theprobabilityand/orimpactofunfortunateeventsortomaximizetherealizationofopportunities.

104.TranslatethefollowingintoChinese：在昨年信贷危机爆发的时候，联邦的看守者们向国内的各主要金融机构注入了数以百亿计美元，而他们这么做的原因在于这些银行是这样之大致使于官员们担忧它们的破产将会拖垮整个金融系统。现在，这些银行中最大的几家甚至变得更大了。这场危机对控制着美国金融的很多巨头们而言很可能是件好事。由联邦政府安排的一系列兼并行动将坠入困境的银行安全地并入了更为安全牢固的企业中。这场危机还让幸存者们得以乱中重生，市场所位获得牢固，抵花销者信贷拥有更大的控制权，并获得更多的盈利空间。现在，这个国家每十美元的存储中就有高出一美元是由摩根大通银行（.MorganChase）掌控的，该银行则由华尔街的一些老字号机构组成。美国银行（BankofAmerica）和西海岸最大的银行------富国银行（WellsFargo）的情况也是这样，而前者在收买美林证券（MerrillLynch）时受到重要损失，又因金融危机被政府部分收买。联邦政府数据显示，现在每两笔抵押贷款中就有一笔和每三张信用卡中就有两张是由以下银行发放的：上述三家银行，再加上由政府营救并拥有的花旗银行（Citigroup）。在昨年九月金融系统几乎完好崩溃一年后，联邦政府的对付措施重新界定了美国人获得抵押贷款、学生贷款和其他信贷的方式，并高调主导了一场关于高管薪酬的全国性谈论。但是，在这场危机带来的所有结果中最让高层看守者们不安的是那些超大型银行却变得更大，而且它们之间的联系更为亲密。看守者们有两方面的担忧：一是花销者对服务的选择余地最后会越来越小，二是银行会认为若是事情弄砸了它们总会获得政府的支持。这一假设的保证意味着若是大企业认为联邦官员总会替它们整理烂摊子的话，它们就会重操旧业，再次从事那些曾引起此次危机的高风险行为。这个名为“道德风险”的问题可以在必然程度上说明政府官员为何要严实监控那些获得了营救的银行------督查其高管的薪酬并审查其重要部门或分支机构的销售。除其他，此问题还促使奥巴马政府采用措施建立新的看守系统以防新危机的再现。此项计划还对大型金融机构设置了更高的资本标准，并授权政府可以接收各样坠入困境的金融机构以便渐渐而有序地停止其业务。Fillineachofthefollowinggapswithoneofthesentencesgivenbelow:Yetinvestmentbankshaverecentlychangedoutofallrecognition.Iftheydecidedthepropertywasabargain.3)Inshort,investmentbankinghasmigratedfromanagencymodeltowardsaprincipalone.Itismakingbiggerbetswithitsowncapital,too.Themainengineoftransformationhasbeencompetition.Othershavegonefornichemarkets.SupplementaryReadingTheSecret'sOut:CanSwissBankingAdapttoScrutiny1.Accordingtothearticle,what’sthekeytothesuccessofSwissbanksLonghistory.Goodlocations.2.

C.Reputationfordiscretion.∨D.Servicetoreducetax.WhichoneofthefollowingstatementsaboutBradleyBirkenfeldisNOTtrueHehasworkedinGeneva.Heisjailedforhiswrongdoing.C.HewasforcedtogivesomeconfidentialdocumentstoU.S.officials.∨D.HewasaformerbankerofUBS.3.Accordingtothearticle,itismainly__________thatSwitzerland’swealth.

builtspeciallocalfoodwell-developedtourismindustriesstrictgovernmentadministrationandmanagementAllofthefollowingstatementsarefeaturesofSwissbanksexcept_________.A.Mostofthemareprivatebanks.B.Theytrytogainasmanyregularclientsaspossible.∨Theypreferwealthypeople.Theyusuallyhavemanyforeignclients.AfterachangeinSwisslawpermittedUBStogiveU.S.officialsdetailsof4,450American-heldaccounts,_________.U.S.officialsstoppedtheirinvestigation.noactionshavebeentakenagainstUBS.C.manySwissfeltthattheyw