Personally, i'm not looking forward to Monday to be honest.
Yes.
However, I don't think that the financial sector can complain. It's failed society, simple as that and is in need of radical reform. The banks should be broken up; a Glass Steagall on steroids.
Unfortunately, that's not will happen though. What we're getting instead is a complex web of poorly designed micro regulation which will not make the system any safer, which will increase costs, will not produce better outcomes and which will not be good for customers..
....and we're all having to do what we are told by the Americans whether we agree with them or not...because of the Dollar's dominant role as a reserve currency.
Yeah - what a nightmare, having to account for what you do to people trying to prevent another ten years of economic misery.
+1.
Would never have been neccesary had the bankers not spent millions lobbying to knock over Glass-Steagall and other regulations which at least attempted to govern the financial services market.
Want to know the quote that sums the whole mess up? Warren Buffett (that well known Socialist/Communist/Guardianista) said the following in 2009.
"Unless derivatives contracts are collateralized or guaranteed, their ultimate value also depends on the creditworthiness of the counterparties to them. In the meantime, though, before a contract is settled, the counterparties record profits and losses—often huge in amount—in their current earnings statements without so much as a penny changing hands.
The range of derivatives contracts is limited only by the imagination of man (or sometimes, so it seems, madmen)."
I deal with CDSs so Dodd-Frank has affected my operations a great deal and now we have central clearing being made mandatory. Systemically it will make things safer but I fear that it may also affect staffing numbers!
It's the usual sledgehammer approach to legislation and will just lead to consultancy firms that don't really understand the implications, making millions advising FIs on how to react. Unfortunately the regulatory industry - and it has become one - tends to take the "turn a blind eye until there's a meltdown and then panic and introduce something that just creates a lot of effort" approach rather the "have sensible controls in place in the first place" route.
Yeah - what a nightmare, having to account for what you do to people trying to prevent another ten years of economic misery.
+1.
Would never have been neccesary had the bankers not spent millions lobbying to knock over Glass-Steagall and other regulations which at least attempted to govern the financial services market.
Want to know the quote that sums the whole mess up? Warren Buffett (that well known Socialist/Communist/Guardianista) said the following in 2009.
"Unless derivatives contracts are collateralized or guaranteed, their ultimate value also depends on the creditworthiness of the counterparties to them. In the meantime, though, before a contract is settled, the counterparties record profits and losses—often huge in amount—in their current earnings statements without so much as a penny changing hands.
The range of derivatives contracts is limited only by the imagination of man (or sometimes, so it seems, madmen)."
i have sat in meeting after meeting over say 15 years where banks seem to be fooling themselves or whats worse want to fool themselves into thinking they are creating some form of paper profit ...the regulators seem to me to be at least 5 years behind the guys that introduce the "product" ...until the regulators are ahead of the game it wont stop
from what i have seen all frank-dodd will do is give a lot of US companies/institutions /or those that do business with them ,a whole lot more work -the cost of which they will pass on to their customers
I deal with CDSs so Dodd-Frank has affected my operations a great deal and now we have central clearing being made mandatory. Systemically it will make things safer but I fear that it may also affect staffing numbers!
My company have had to updaate our internal systems to create a clearing page so that when we send the trades out through markitwire to the customers they go straight to clearing as before they had to select their own clearer when accepting the trades.
I thought Sarbannes-Oxley killed the IT/Financial game with over regulation and the subsequent growth in useless over hypped regulation, which with the benefit of hindsight of course did bollox all.
I thought Sarbannes-Oxley killed the IT/Financial game with over regulation and the subsequent growth in useless over hypped regulation, which with the benefit of hindsight of course did bollox all.
More crap and glad I am out.
SOX is a pain in the arse. Luckily, despite working for a company whose parent status is in the US, it doesn't affect me in my current job. Besides, the sentiments of these acts are laudable - it's just the implementation that is laughable.
All of them are just bullshit anyway - crap designed by politicians to con the public into thinking they're doing something whilst waiting for the furore over the latest economic disgrace perpetuated by the banks to die down.
It's the usual sledgehammer approach to legislation and will just lead to consultancy firms that don't really understand the implications, making millions advising FIs on how to react. Unfortunately the regulatory industry - and it has become one - tends to take the "turn a blind eye until there's a meltdown and then panic and introduce something that just creates a lot of effort" approach rather the "have sensible controls in place in the first place" route.
It's the regulators that don't understand the implications not necessarily those advising their clients. Agree with what you say. AIFMD is another such clusterfuck.
The problem is that the greater the risk, the more money you make. How are you going to get a bunch of people whose lifestyles revolve around money to be more responsible? I suppose tight regulation is one way, but money also brings power and influence and these people will fight it all the way.
The other option is to accept that the current system is deeply flawed and devise a better system. But whilst this is clearly the way to go - the power and influence will not let it happen. All in all pretty depressing.
I deal with CDSs so Dodd-Frank has affected my operations a great deal and now we have central clearing being made mandatory. Systemically it will make things safer but I fear that it may also affect staffing numbers!
Time for the investment banking industry to start realistic remuneration practices. Significant cuts to total comp all the way down the gravy train and one day earnings in the city might reflect somewhere close to the real world. Mental pay structures and "unrealised p&l" (that doesn't arrive when it goes tits up) on earnings statements are the main factors that ultimately affects staffing numbers, not much needed regulation !
Comments
However, I don't think that the financial sector can complain. It's failed society, simple as that and is in need of radical reform. The banks should be broken up; a Glass Steagall on steroids.
Unfortunately, that's not will happen though. What we're getting instead is a complex web of poorly designed micro regulation which will not make the system any safer, which will increase costs, will not produce better outcomes and which will not be good for customers..
....and we're all having to do what we are told by the Americans whether we agree with them or not...because of the Dollar's dominant role as a reserve currency.
It's a mess.
Would never have been neccesary had the bankers not spent millions lobbying to knock over Glass-Steagall and other regulations which at least attempted to govern the financial services market.
Want to know the quote that sums the whole mess up? Warren Buffett (that well known Socialist/Communist/Guardianista) said the following in 2009.
"Unless derivatives contracts are collateralized or guaranteed, their ultimate value also depends on the creditworthiness of the counterparties to them. In the meantime, though, before a contract is settled, the counterparties record profits and losses—often huge in amount—in their current earnings statements without so much as a penny changing hands.
The range of derivatives contracts is limited only by the imagination of man (or sometimes, so it seems, madmen)."
I feel like I've logged into a quantum physics forum
*sits back and sips the Dom*
Is 'sipping the Dom' a euphemism for noshing off your old school tie chum?
from what i have seen all frank-dodd will do is give a lot of US companies/institutions /or those that do business with them ,a whole lot more work -the cost of which they will pass on to their customers
More crap and glad I am out.
All of them are just bullshit anyway - crap designed by politicians to con the public into thinking they're doing something whilst waiting for the furore over the latest economic disgrace perpetuated by the banks to die down.
The other option is to accept that the current system is deeply flawed and devise a better system. But whilst this is clearly the way to go - the power and influence will not let it happen. All in all pretty depressing.