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Policy Models for CEOs: A Case Study in Banking

John E. Mulford
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John E. Mulford: Graduate School of Business Administration, CBN University, Virginia Beach, Virginia 23463

Interfaces, 1985, vol. 15, issue 5, 64-70

Abstract: A large portfolio of nonperforming residential construction loans severely threatened a large commercial bank's earnings. A hastily constructed, simple cash-flow model suggested that subsidizing mortages for financially troubled builders was the best policy, but interpersonal relations outweighed discounted cash flows in the final decision.

Keywords: physical institutions: banks; professional: MS/OR implementation (search for similar items in EconPapers)
Date: 1985
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