When the Greenski deal collapsed in 2014, it exposed a hole in the financial services industry that would have been difficult to fill.
It also showed the extent to which the industry had fallen behind on the cost of capital, which in turn meant that the companies that made up the vast majority of finance firms were not being paid for their work.
Now that the Greenskys have been brought to justice, the industry needs to learn from their mistakes and get back on track.
But the Greenskoys were not just some rogue traders.
They were a team of seasoned industry insiders, who have been tasked with reining in risky finance practices that are increasingly common in the US.
The Greenski case has shown that it’s possible to protect the financial system and get it back on the right track without sacrificing the hard work of those who put their lives on the line every day to make it happen.
Here’s what you need to know about the Greenskie saga.
Who was the Greenskin?
The Greenskies are named after a Scottish family, which was once known as the Greenkings.
In 1894, the family of the family that owns the company, Greenski, decided to build an investment bank.
In the US, the Greenskins were known as Greenskips.
The name came from a series of letters they received from investors.
“They said, ‘We want a bank that will go after the bad guys in the stock market,'” says Gary Davis, who worked for Greenskip in the early 1990s.
“We said, well, we want a good one that will get the job done.
And they said, Well, you’re right, but we want the bank that won’t be a bad bank.”
After that, the bank was named Greenski.
As Davis says, the name stuck.
Davis says he never thought that the name would have such an impact on the stock trading market.
“The Greenski name came as a shock to everybody,” he says.
“It was an unusual name for a US bank.”
Davis says the bank’s reputation and investment profile was not the issue.
“I don’t think anybody had any idea that they were going to be a good bank,” he explains.
The Greenskin name is also a pun. “
That’s why people are so shocked when they hear that name.”
The Greenskin name is also a pun.
In a previous incarnation, Greenskis were a group of people that had a lot of common ground.
“This bank was created by two people, but you didn’t see them as brothers,” says Davis.
“These are people who have common interests.
The idea that you could have a bank and not see them together was unheard of.”
Davis was part of the Greenskai’s board when the Greensklis first set up the bank in 1991.
When the bank failed, Davis was one of the few executives left.
“At that time, there were only about 25 or 30 of us, and I was the youngest,” he recalls.
“My first big fear was, ‘I can’t leave my job.'”
But he found that he had a strong support network and that he was able to get through the financial crisis.
He was a leader in the bank.
“When the stock crashed, I had a meeting with [CEO] Kevin Greensky, who was an investor and he was very impressed with my ability to get out of that financial crisis,” Davis says.
Davis continued to serve on the board of the bank, but the Greensdkis were not able to continue as a separate company, which would have allowed them to maintain their independence.
“There was only one bank,” Davis explains.
That is the reason why the Greenskkis are called Greenskids.
Greenski was a huge hit For all its success, the investment bank was not able, until 2008, to become a major player in the securities markets.
The stock market crashed in 2008 and the Greenskos’ stock plummeted, triggering a stock market crash.
“A lot of investors lost money,” says Peter Smith, the CEO of investment bank CBRE.
“And that was a very, very bad situation.”
CBRE lost $3.4 billion in 2008.
By the time the Greenskrids regained their footing, they had lost $15 billion.
The bank had a big hole to fill, and the only way to do that was to buy back their own stock, which wasn’t exactly an easy proposition.
“So they decided to go the traditional route, which is to go public and issue a stock offering,” says Smith.
“Because they were very confident they could make money in the market.”
They also decided to do this through a private equity firm, which had more experience in private equity than the Greenskwis.
After all, the private equity company had the assets to get the Greensku’s name