Credit Ratings - still no reform

While regulators have produced tons of paper simple and effective reform of Credit Rating Agencies has not happened.

https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2969086

Is big better in Money Management Biz?

Bigger does not necessarily mean better. Big fund managers did something right otherwise they would not be big. But that could also be their undoing. Once you manage billions you are going to find it very difficult to achieve any out performance. That will mean that smaller firms will find room to grow.
Big money managers are squeezing smaller ones at worst possible time - Business Insider

EU wants a ban on UK firms setting up Brexit shell companies

So what is supposed to be a 'Shell Company'? Are the Eurocrats going to prescribe the exact number of jobs that have to be hired by a subsidiary? As I repeatedly said - starting in Feb 2016 - one has to look at the different business lines in detail. M+A businesses are quite often already on the ground in the 'Rest EU'. One office should be enough, same can be said for most other finance businesses.
EU wants a ban on UK firms setting up Brexit shell companies

Goldman Sachs Charity donations

The honrable thing - do good and do not talk about it!

Room to Read Goldman Sachs party - Business Insider

Slap on the Wrist for Omega's Cooperman

Can one call a $5 million fine significant given that Cooperman is a certified billionaire? Slap on the wrist would be more appropriate. And if no guilt is admitted why pay a fine? Looks like there is a two level justice system and incidents like these will do nothing to restore public confidence in financial regulation or the banking and investment industries.
Leon Cooperman’s Hedge Fund Settles Insider Trading Case

Vanguard's new UK Online Offering

Afraid this is the way things will go - I  remember the time (more than 45 years ago) when Robeco's international flagship fund charged 0.36%. So maybe that is where the Mutual/Investment Fund Industry is headed to. Who still remembers Bernie Cornfeld's ill-fated IOS? Those were the baby years of investing funds...and the sums have become enormous since the late 1960s. But looking at the way Fiduciaries like Aberdeen Asset Management and Standard Life spread the investor's money around like confetti it does not give the impression that the Industry is ready to face the new reality.
Vanguard launches online investment service in UK

EU: Free Trade only when Eurocrats like it?

Talk about EU being a bastion of Free Markets is Rubbish! Services - the growing part of advanced economies - are carefully excluded where it suits the Eurocracy. So banning Euro Clearing from being handled in the City of London is a blatant slap in the face of Free Trade. Let's call a spade a spade and not pussyfoot around with these hypocritical ideologues - be they called Merkel, Macron or Juncker!
The City of London After Brexit Isn't Just About Jobs - Bloomberg

Johnny Depp made $650 million but couldn't pay for his lavish lifestyle

Just another reason for inequality is demonstrated by this: Copyright protection for Movies and Actors? Is it really necessary for the benefit of mankind? not the same as inventing a new medicine, and in the old days even the people behind life-saving medicines did not do it for the money anyway.

Johnny Depp made $650 million but couldn't pay for his lavish lifestyle, ex-manager says

Regulation: Race to the bottom?

If rules are interpreted so 'flexibly' in the USA it will be interesting to see how 'Europe' reacts (if the sleepy bureaucrats there even notice or care). Apart from the problem that Brexit will soon loom over any regulation in 'Europe', the response could be either to loosen rules/interpretations as well or demand that US entities comply with stricter rules designed in Europe. And what if the UK goes for a laxer regulatory environment? Every bloc will try to help his financial firms or bloc those from the other blocs, interesting times indeed!
Who’s Watching Wall Street? The Feds Turn a Blind Eye to Goldman’s Game | The Fiscal Times

Swiss National Bank the "Greater Fool?

Amazing focus on biggest Momentum stocks shows lack of imagination in this bastion of Conformity.
"Mystery" Central Bank Buyer Revealed, Goes On Q1 Buying Spree | Zero Hedge

Risk Parity: Just another name for Portfolio Insurance?

Risk Parity - like Smart Beta or Factor Investing - is old wine in new bottles. A Bull market always needs a rationale to justify the irrational, Greed has overcome Fear. In reality all is backed by a tide of easy money.
Pondering The Real Perils Of Risk Parity Portfolios | Zero Hedge

Compliance hiring at fever-pitch!

My (pessimistic) prognosis of  'One Compliance Kommissar behind every productive Staffer' is soon (already?) sad reality. Wish the same could be said about politicians and civil servants! Did Ancient Rome not die after suffocationg on legal and bureaucratic overkill?
Deutsche Bank hiring in compliance - Business Insider

Deutsche Bank: Bye Bye London? but not because of Brexit

The track record of the bank is nothing to write home about. The huge build-up in London, from an insignificant commercial branch in the mid 1980s - has probably cost more than it ever earned the bank. So move back 'home' may be sensible, but not because of Brexit!
DEUTSCHE BANK EXEC: We may need to move 4,000 UK staff to Europe because of Brexit

EU markets rules are the 'worst piece of legislation'

No surprise! Anyone who ever had to read through the garbage produced by the FSA, FCA, Bafin etc would heartily agree. At least Brexit will cut out the ECB and EU scribblers!
The boss of one of the world's biggest exchange groups said EU markets rules are the 'worst piece of legislation' he's ever seen

SURVEY: 82% think more firms will set up in Europe because of Brexit

Nothing to worry about, if anything positive for UK as its firms will have to set their eyes on export markets in a more pro-active manner. Free of the cost of EU membership (mostly socialist redistribution to the unworthy) and regulation Britain should do well. Being ruled by one government rather than a committee of 27 should speed up decision making.
SURVEY: 82% of investors think more firms will set up in Europe because of Brexit

Softbank acquires Fortress - Marriage made in Heaven or Hell?

There could be no greater discrepancy between the business model of these two parties. Apart from the fact that Fortress alone already has its fingers in too many pies, this deal seems to increase the impact of 'diworsification' by the power of two. It will be interesting to see how this pans out over time. In the meantime, hats off to the Fortress Principals, it looks like an excellent deal for them!
The Fall of Fortress

Compensation: Excessive focus on individual performance dangerous

Compensation based on share price development? This is contrary to all sensible pay schemes and one of the main contributing factors to excessive executive pay. Maybe this works in the confines of a small investment boutique but even there it is not clear what the scheme could do to improve the performance produced for investment clients.
Excessive focus on individual performance is inherently dangerous, says Barry Olliff | City A.M.

ABarclays exec breaks silence over LIBOR-rigging

Anyone who has worked in a front-line trading/sales position will know that nothing is more tedious than giving out regular valuations to customers, esp if the relevant security trades infrequently. Apart from the tedium it is not clear why a trader should not give a LIBOR quote that reflects his position. He/She is no god, or impartial regulator, any quote reflects a view. A lot noise about nothing! Just to keep the jobsworth in government, media in clover!
A Barclays exec who went to prison for LIBOR-rigging breaks his silence: 'Traders have been served up as fall guys to protect these more powerful senior bankers'