Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
Jerome a Paris:
Of course, if the model is that they don't keep it (and note that unitisation falls into that category), then they may be incentivised to structure worse assets.

In the model I advocate, there is in fact no transaction or "sale" of an asset. The asset is created in custody, and stays in custody.

Stakeholders will participate only on the basis that any agreed profit margin is invested. It's then up to them what they do with their entitlement to Units once the development is complete.

But I suggest that they will see that their interests lie in doing a good job - whether or not they are capable of doing a good job is another issue.

Jerome a Paris:

Bankers' pay (as highly qualified professionals) is justified, to that extent.

I have no difficulty with that, albeit relative valuations are not easy.

"The future is already here -- it's just not very evenly distributed" William Gibson

by ChrisCook (cojockathotmaildotcom) on Tue Mar 24th, 2009 at 01:58:32 PM EST
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