Badwill accounting

Interesting post from Capital Issues on the issue of “Badwill accounting”. It is based on a post by Adrian Docherty but goes into more detail on the mechanics of why there is no free lunch when you acquire a bank for less than its book value.

Badwill accounting

Author: From the Outside

After working in the Australian banking system for close to four decades, I am taking some time out to write and reflect on what I have learned. My primary area of expertise is bank capital management but this blog aims to offer a bank insider's outside perspective on banking, capital, economics, finance and risk.

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