ring-fencing

Definition

Legally separating certain assets or operations to protect them from creditors or risks in other parts of the business. It's building financial walls to ensure that when one division explodes, it doesn't take the whole company down.

Example Usage

The conglomerate ring-fenced its profitable divisions before the risky acquisition, just in case things went catastrophically wrong.

Origin

British banking regulation term that became widespread after the 2008 crisis

Fun Fact

Post-crisis banking regulations require ring-fencing retail banking from investment banking, essentially admitting that banks can't be trusted not to gamble with depositors' money.

Source: Banking regulation and corporate restructuring terminology

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dayfn

Didn't ask you for nothing...