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Problems affecting the merrill lynch investment bank

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Reference no: EM131304557

In an account of the financial crisis, Roger Lowenstein described the problems affecting the Merrill Lynch investment bank: "too much leverage, too much relying on short-term [borrowing], and assets, especially real estate, of dubious value."

Why might too much leverage be a problem for an investment bank? Why might relying too much on short-term borrowing be a problem?

Reference no: EM131304557

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