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How boards of directors of PSU and private banks can be made more responsible

How boards of directors of PSU and private banks can be made more responsible

Finance
By M DamodaranYears ago, during an impassioned discussion on banking, especially lending practices, a friend, in a moment of excitement, coined a new word — creditability. The rest of us laughed. Recent developments seem to indicate that he was spot on. Creditability, a combination of creditworthiness and credibility, implying thereby the ability to repay and the willingness to repay, seems to have been a missing ingredient in the decision-making process in several banks. The focus of this piece is, however, not the credibility of the borrower but the credibility of bank boards. Corporate governance theory rests on the foundation that the Board of Directors is the custodian of the interests of all stakeholders. Simply stated, its role, and also its responsibility, is to keep management hon
Top Buys by Directors: Neafsey's $195.5K Bet on ARLP

Top Buys by Directors: Neafsey's $195.5K Bet on ARLP

Finance
Shutterstock photoThe directors of a company tend to have a unique inside view into the business, so when directors make major buys, investors are wise to take notice. Presumably the only reason a director of a company would choose to take their hard-earned cash and use it to buy stock in the open market, is that they expect to make money - maybe they find the stock very undervalued, or maybe they see exciting progress within the company, or maybe both. So in this series we look at the largest insider buys by company directors over the trailing six month period, one of which was a total of $ 195.5K by John P. Neafsey, Director at Alliance Resource Partners LP (Symbol: ARLP). PurchasedInsiderTitleSharesPrice/ShareValue08/07/2017John P. NeafseyDirector10,000$ 19.55$ 195,500.00 Neafsey's ave...