Glossary entry (derived from question below)
English term or phrase:
skeletons out of the closet
English answer:
reveal bank\'s secrets
Added to glossary by
ahmadwadan.com
Mar 17, 2010 13:48
14 yrs ago
6 viewers *
English term
skeletons out of the closet
English
Bus/Financial
Finance (general)
Bank's recovery plan
Explanation: Shall you please advise me in plain English what does the sentence below mean:
Split the “Bad” Bank form the “Good” Bank and get all the skeletons out of the closet
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About the context
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The subject is a bout bank’s plan to get out of its legacy problems after global
financial crisis.
Accordingly, the bank shall, among other things, carry out what follows:
- Ring fence existing non-core assets and define an exit strategy for all Remedial “Leave” accounts
- A dedicated, expert Remedial team will prevent “cross-pollution” and allow the Corporate Bank to focus on existing and new business that is profitable and sound
- Closely supervise and track the management of NPLs through a separate Remedial Credit Committee
- Over time, the “Bad” Bank could transform into a “Vulture” Business proposition
Split the “Bad” Bank form the “Good” Bank and get all the skeletons out of the closet
=======================
About the context
=======================
The subject is a bout bank’s plan to get out of its legacy problems after global
financial crisis.
Accordingly, the bank shall, among other things, carry out what follows:
- Ring fence existing non-core assets and define an exit strategy for all Remedial “Leave” accounts
- A dedicated, expert Remedial team will prevent “cross-pollution” and allow the Corporate Bank to focus on existing and new business that is profitable and sound
- Closely supervise and track the management of NPLs through a separate Remedial Credit Committee
- Over time, the “Bad” Bank could transform into a “Vulture” Business proposition
Responses
3 hrs
Selected
remove dead (non functioning) so-called assets
In this case they are using the phrase "skeletons out of the closet" in a manner that is closer to that phrase's literal meaning then they way it is usually used.
The more standard usage is secrets, or nasty secrets that are hidden in a closet so that visitors will not see those secrets. But the term skeleton means the bare skeleton of a once living human being. The dead body which becomes a skeleton is hidden (in the closet) instead of the person being buried, as would be normal. It could be because the person was murdered, it could be because the household was drawing on income of the dead person without reporting the death, or some other nefarious circumstance like that.
From the standpoint of a bank, the skeletons are virtually dead or non-performing assets, or some type of derivataive holding which is worth much less than its full paper value (if worth anything at all). These skeletons are to be removed from the bank (the closet) and put in a bad bank.
The rather nasty imagery, or use of words, carries over to the attempt to collect on these weak assets through a vulture business. This type of vulture business had gained great attention in the Argentine case several years ago when the government challenged the legitamacy of much of the bad debt that the vultures were trying to collect.
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Note added at 6 hrs (2010-03-17 19:51:15 GMT)
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The "secret" in terms of the skeletons, as used here, for many banks was the overvaluing of securitzed assets, like mortgage backed securities and other more exotic financial instruments which many of the bank insiders knew were overvalued.
The more standard usage is secrets, or nasty secrets that are hidden in a closet so that visitors will not see those secrets. But the term skeleton means the bare skeleton of a once living human being. The dead body which becomes a skeleton is hidden (in the closet) instead of the person being buried, as would be normal. It could be because the person was murdered, it could be because the household was drawing on income of the dead person without reporting the death, or some other nefarious circumstance like that.
From the standpoint of a bank, the skeletons are virtually dead or non-performing assets, or some type of derivataive holding which is worth much less than its full paper value (if worth anything at all). These skeletons are to be removed from the bank (the closet) and put in a bad bank.
The rather nasty imagery, or use of words, carries over to the attempt to collect on these weak assets through a vulture business. This type of vulture business had gained great attention in the Argentine case several years ago when the government challenged the legitamacy of much of the bad debt that the vultures were trying to collect.
--------------------------------------------------
Note added at 6 hrs (2010-03-17 19:51:15 GMT)
--------------------------------------------------
The "secret" in terms of the skeletons, as used here, for many banks was the overvaluing of securitzed assets, like mortgage backed securities and other more exotic financial instruments which many of the bank insiders knew were overvalued.
4 KudoZ points awarded for this answer.
Comment: "Thank you so much Stephanie for elaborated answer which penetrated business issues."
+8
9 mins
to reveal all of the bank's nasty secrets in an attempt at transparency
See
http://www.phrases.org.uk/meanings/skeleton-in-the-closet.ht...
http://en.wikipedia.org/wiki/Skeleton_in_the_cupboard
http://www.thefreedictionary.com/skeleton in the cupboard
http://www.phrases.org.uk/meanings/skeleton-in-the-closet.ht...
http://en.wikipedia.org/wiki/Skeleton_in_the_cupboard
http://www.thefreedictionary.com/skeleton in the cupboard
Note from asker:
Thank you so much fvasconcellos |
Peer comment(s):
agree |
Paula Vaz-Carreiro
3 mins
|
Thank you, Paula!
|
|
agree |
Jenni Lukac (X)
15 mins
|
Thank you, Jenni!
|
|
agree |
Suzan Hamer
33 mins
|
Thank you, Suzan!
|
|
agree |
jccantrell
: Gotta go with the first on the list, though.
1 hr
|
Thank you! Yes, that's probably the best reference.
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agree |
John Detre
2 hrs
|
Thank you, John!
|
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agree |
cmwilliams (X)
2 hrs
|
Thank you!
|
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agree |
Jack Doughty
2 hrs
|
Thank you, Jack!
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agree |
Nicole Y. Adams, M.A.
19 hrs
|
Thank you, Nicole!
|
+9
9 mins
reveal all secrets
A skeleton in the closet is a secret.
In this case it would mean to give full disclosure about bad debts, high-risk loans or "toxic assets" that the bank may have so that a potential buyer would know all of the relevant details before buying the bank.
In this case it would mean to give full disclosure about bad debts, high-risk loans or "toxic assets" that the bank may have so that a potential buyer would know all of the relevant details before buying the bank.
Note from asker:
Thank you so much kmtext |
Peer comment(s):
agree |
Paula Vaz-Carreiro
3 mins
|
Mòran taing, Paula.
|
|
agree |
Suzan Hamer
33 mins
|
Mòran taing, Suzan
|
|
agree |
British Diana
1 hr
|
Mòran taing, Diana
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|
agree |
John Detre
2 hrs
|
Mòran taing, John
|
|
agree |
cmwilliams (X)
2 hrs
|
Mòran taing, CM
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agree |
Tina Vonhof (X)
: Good explanation.
4 hrs
|
Mòran taing, Tina
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agree |
Sven Petersson
8 hrs
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Mòran taing, Sven
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agree |
Ildiko Santana
15 hrs
|
Mòran taing,Ildiko
|
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agree |
Nicole Y. Adams, M.A.
19 hrs
|
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