Stuff you should know: Difference between revisions

}}In a desperate attempt to stop [[salespeople]] going, “hey [[legal eagles]], can you read this email for me”, and to counterpoint lackadaisical [[credit officer]]s saying, “the question of whether we have credit risk to that bank account is a legal question on which I can’t opine”<ref>Real-life quote, by the way, from a [[managing director]] in a global investment bank, to which the retort ''should'' have been, but I regret to say was not, “pal, if you are really saying you don’t know that, you need to [[get your coat]]”.</ref> we are running a snagging list of legal concepts about which no bank employee should plead ignorance. ''It is your job to know this stuff''.

*How [[agency]] works and ''why you can’t be [[agent]] for yourself'';

*The nature of [[cash]] and [[indebtedness]];

*The difference between [[shares]] and [[bonds]], where they fit in the [[capital structure]] and, indeed, what a [[capital structure]] ''is'';

*What [[trust]]s are and why we use them;

*How [[bank account]]s work, and why banks don’t keep your money in a little jar with your name on it (in part because, per the nature of cash, they ''can’t'');

*The nature of the deal: [[offer]], [[acceptance]] and [[consideration]];

*[[Amendment]] and [[waiver]];

*How [[set-off]] works, and more particularly, when it doesn’t;

*How [[security]] works and why it is different from [[trust]];