Categories
Thoughts

Bank Balance

For VISA applications, loan applications etc, a lot of people ask for last few month’s bank statement. I wonder how accurately can a bank statement capture one’s finances?
For example, even though I have sufficient funds for my needs and small emergencies, in the past 6 months my bank balance has never been more than 15k for a period of more than a week.

however, if I take a small loan, (or put my contingency funds, which I keep in cash in the bank) the same bank statement would look much more attractive.

 

Categories
IPO

VISA’s IPO

Visa confirmed it would proceed with a public offering this spring. The company hopes to raise $18.8 billion, making it America’s biggest IPO. Visa takes fees from credit-card transactions;

Isn’t it odd that the in a time when the entire world is facing Credit Crisis, loan defaults are at an all time high, VISA (which makes all its money from Credit Cards) is confident that it can launch the biggest IPO in American history. Maybe it proves that the present crisis cannot scare off the companies with sound fundamentals.

PS: the default risk is borne entirely by the company issuing credit cards and not VISA. Hence the company could take this audacious step.