Blanche Lincoln’s famed derivatives legislation, which would basically prevent any big bank from ever trading CDS again, has already been chastised by Barney Frank. Now, a senior Treasury official has essentially delivered another blow to the Lincoln legislation.
Say “auf Wiedersehen” to naked short selling in Germany. Because of “exceptional volatility” in euro-area government bonds and credit-default swaps, massive short-selling was leading to excessive price movements which “could endanger the stability of the entire financial system,” Germany’s BaFin financial services regulator said today.
Investment banking continues to be a laborious, tedious practice. Banks are implementing ways to boost retention by instituting policies designed to reduce number of hours / frustration associated with the job – 100hr work weeks are still common.
Fundamentally though, not much has changed over the last 15 years. Take financial modeling for example, which remains one of the most time consuming aspects of investment banking. Even today, models can take hours or days to put together. Building a good model requires years of training and a mastery of advanced accounting and finance concepts. Given almost every company reports and behaves differently from an operational standpoint it becomes difficult to use a universal template to build models for varying situations. Read More >>