FROM THE EDITOR
BY NADINE BONNER
In one of the more famous scenes in Hamlet, Polonius warns Laertes, “Neither a borrower nor a lender be.” Of course, if everyone took this advice, we would all be out of business. But it shows, even in Shakespearean England, the risks of lending money were well known. Although no one could have foretold the plethora of options that exist today for both parties.
In our Risk Management issue, we attempt to provide some guidance at managing just a few of the risks lenders face. At first glance, it would not appear that the new accounting rules – ASC 660 – that have been looming for the past few years, and are now being enforced, would present a danger to lenders. But John Monhemius of the Durkin Group highlights potential pitfalls and presents ways lenders can avoid them.
The commodities market, on the other hand, is always a wild ride. John Echols and Greg Crowley of Opportune make the case for a strategic risk management plan that will protect lenders against the flights of fancy their borrowers may engage in.
Is anything riskier than opening a new bank? Judith Erwin had no intention of going that route again after Square 1, the bank she founded, was sold to Pacific Western. But the prospect of setting up a venture bank in New York from scratch lured her back into the game. She spoke with me about Grasshopper Bank, a new nationally charted venture bank that promises to offer borrowers the convenience that Amazon.com provides for the rest of us.
In our regular departments, Dave Kucera shares the many ways artificial intelligence is making the lending business more efficient in Specialty Lending. In Turnaround Corner, Michael Eisenband explores prepackaged restructurings, which seem to be flying through the courts at the speed of light. Like children of divorce, licensed trademarks can be victims of custody battles following a bankruptcy. In Legal Lines, Stephen Selbst reviews the U.S. Supreme Court’s recent decision giving the licensee the option of continuing to use the intellectual property of a licensor that’s rejected it.
Once a year, we take a look at the other side of the lending equation. Our Borrower’s Issue is coming up next. Until then, let us know what you would like to see in the magazine. Send an email to firstname.lastname@example.org and share your thoughts.