Saturday, March 26, 2016

It's directorships all the way down

The global financial crisis beginning in 2007 brought to light to the central role of special purpose vehicles in implementing complex transactions. Although the crisis stressed many of the early 2000s vintages of these vehicles out of existence, they remain integral to the financial sector, including in the prolonged clean up of the property debt overhang. The Irish Times has a few details today on one company central to this line of business in Ireland, Structured Finance Management (SFM) --

Returns to the Companies Registration Office show that SFM’s managing director, Karen McCrave, and her colleague, Jonathan Hanly, are both directors of 117 companies. These include all those tied to Carval, Cerberus and Goldman. Fellow staff members Fiona de Lacy Murphy and Rachel Martin are on the boards of 124 and 100 companies respectively. A fifth employee, Ian Garvan, has 41 directorships. 

Presumably part of the comparative advantage of these companies is that they've figured out how to standardize these transactions so that having a small number of people holding hundreds of director positions is feasible.

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