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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
Facebook: Cambridge Analytica data had private messages

Facebook: Cambridge Analytica data had private messages

Technology
Facebook has confirmed that private messages were included in data involved in the Cambridge Analytica scandal.The social network said that about 0.5% of the 305,000 people who installed a personal data-harvesting app had given permission for it to access their Facebook inboxes.However, many more would have been affected as the haul would have included conversations with others. It is not clear whether the messages were given to Cambridge Analytica.The political consultancy has yet to comment on the latest development. "Prior to 2015, Facebook's platform policy allowed developers to request permission to access inbox content but only if the person explicitly gave consent for this to happen," a spokeswoman for the US tech firm told the BBC."According to our records, only a very small number...
One of Russia’s most successful private entrepreneurs sells–to the state

One of Russia’s most successful private entrepreneurs sells–to the state

Finance
IN THE Russian business community Sergei Galitsky served as a rare example of a self-made billionaire who rose with relatively little state help and outside the natural-resources trade. He built his retail company, Magnit, from scratch into Russia’s largest network; it has more than 16,000 stores. Rather than moving to Moscow, he kept his headquarters in his hometown of Krasnodar, where he also founded a football club. On February 16th he made a telling exit, announcing he would sell nearly all of his shares in Magnit—29.1%—to VTB, a state bank.That Mr Galitsky (pictured, above) decided to sell is the result of a tough business cycle and some strategic mistakes. More remarkable is that he found a buyer not on the domestic private markets, or from among foreign investors. Selling to a publi
Malaysia OKs new search by private company for missing plane

Malaysia OKs new search by private company for missing plane

Technology
Malaysia's government said Saturday that it has approved a new attempt by a private company to find the wreckage of Malaysia Airlines Flight 370, nearly four years after its disappearance sparked one of aviation's biggest mysteries. The Houston, Texas-based company Ocean Infinity dispatched a search vessel this past week to look in the southern Indian Ocean for debris from the plane, which disappeared March 8, 2014, on a flight from Kuala Lumpur to Beijing with 227 passengers and 12 crew members. The governments of Malaysia, China and Australia called off the nearly three-year official search last January. The Australian Transport Safety Bureau's final report on the search conceded that authorities were no closer to knowing the reasons for the Boeing 777's disappearance, or its exact loca...