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by hayes
September 18th, 2008, 3:23 pm
Forum: General Forum
Topic: Solution: Back to "Prudent Man Rule"?
Replies: 29
Views: 51098

Solution: Back to "Prudent Man Rule"?

<t>QuoteOriginally posted by: torontosimpleguyQuoteOriginally posted by: mencey2That´s distractive, it is not the prudent of the investment managers the source of this but rather policy mistake and role of IB. The probelm is the toxic waste level 3 asset the IB had in their balancesheet and its valu...
by hayes
September 18th, 2008, 2:12 pm
Forum: General Forum
Topic: Solution: Back to "Prudent Man Rule"?
Replies: 29
Views: 51098

Solution: Back to "Prudent Man Rule"?

Pros:1) Simplier to monitor and manage investment funds.2) Less opportunities for risky leverage/ speculation.Cons:1) Less diversification, hedging and liquidity available to create a well balanced portfolio.2) I'll have to restudy that part of my CFA part 2 again.
by hayes
September 18th, 2008, 2:05 pm
Forum: General Forum
Topic: The role of the SEC in the Collapse of the Financial Markets
Replies: 4
Views: 48875

The role of the SEC in the Collapse of the Financial Markets

In the future there will be only 2 banks. The SEC and the FED.So be nice about them, they'll be your employer soon enough
by hayes
September 18th, 2008, 1:57 pm
Forum: Trading Forum
Topic: Article that explains what is happening
Replies: 13
Views: 51144

Article that explains what is happening

Agreed. In 6 months/ a years time, everything that's happening right now will be quite simple to explain logically. Best wait until then if you ask me.*leehayes81 puts down his copy of Black Swan and gets on with his work*
by hayes
September 18th, 2008, 9:17 am
Forum: General Forum
Topic: The Role of Spreadsheets in the Collapse of the Financial Markets
Replies: 28
Views: 53315

The Role of Spreadsheets in the Collapse of the Financial Markets

<t>Not here! My pivot tables are perfect thank you very much..... If you really want to blame a MS app for the world's ills can we please start with MS Access? Actually, I don't think it caused the problems either, but any opportunity to bash Access is always a good thing, (along with the hoards of ...
by hayes
September 17th, 2008, 4:34 pm
Forum: General Forum
Topic: I have come to bury TJ and not to praise him.
Replies: 45
Views: 52827

I have come to bury TJ and not to praise him.

<t>I'm new, so I can't comment on TJ directly. But this story is as old as the internet itself:Troll = Ban them (email/ IP address - Never fool proof, but surprisingly effective)Annoying = Ignore themTJ isn't really the problem, it's the lack of functionality that's the problem. It's strange that yo...
by hayes
September 9th, 2008, 11:53 am
Forum: General Forum
Topic: Citigroup
Replies: 18
Views: 53322

Citigroup

<r><URL url="http://en.wikipedia.org/wiki/CitigroupCitigroup">http://en.wikipedia.org/wiki/CitigroupCitigroup</URL> was formed on October 8, 1998 following the $140 billion merger of Citicorp and Travelers Group to create the world's largest financial services organization.[4] The history of the com...
by hayes
September 3rd, 2008, 10:36 am
Forum: General Forum
Topic: Changing Prime Brokers - Long / Short Strategy
Replies: 3
Views: 49191

Changing Prime Brokers - Long / Short Strategy

<t>If your prime brokerage wants the hedge fund's business then they'll first meet with the fund to discuss their current volumes, products and other requirements.I would say that what happens next depends on how lucrative the potential business is that the fund is offering. If they really want it t...
by hayes
August 22nd, 2008, 10:59 am
Forum: General Forum
Topic: A large bank is about to go bust...we're not going to tell you which one
Replies: 86
Views: 63180

A large bank is about to go bust...we're not going to tell you which one

<t>The question was there more to start the discussion than state my views.My opinion is:I gave Citi the "?!?!" because they are the largest US bank and well connected to the current administration in the white house/ Fed and SEC. But they have also had a large number of write-offs meaning they woul...
by hayes
August 20th, 2008, 3:04 pm
Forum: Trading Forum
Topic: Front Office P&L Checks for Illiquid Mkts
Replies: 22
Views: 55433

Front Office P&L Checks for Illiquid Mkts

Cheers!
by hayes
August 20th, 2008, 12:50 pm
Forum: General Forum
Topic: A large bank is about to go bust...we're not going to tell you which one
Replies: 86
Views: 63180

A large bank is about to go bust...we're not going to tell you which one

<t>Good points. This is all just speculative as there's no way of telling what (if anything) might happen.If they did fall the US government are in a puzzle. With the thought of a Chinese (Or anyone foreign looking or sounding) buyout unpaletable by the voters they'll probably be forced to try and f...
by hayes
August 19th, 2008, 8:22 pm
Forum: General Forum
Topic: A large bank is about to go bust...we're not going to tell you which one
Replies: 86
Views: 63180

A large bank is about to go bust...we're not going to tell you which one

<t>Well "for fun" let's just hypothesize here, that if a certain bank that's dropped in value by 20% today was to go belly up:Would it get offered to JPMorgan again at a bargain basement price? Or perhaps Bank of America? Goldmans? Citi?!?!If you were the U.S. government/ Fed/ SEC, what would you do...
by hayes
August 18th, 2008, 3:52 pm
Forum: Trading Forum
Topic: Front Office P&L Checks for Illiquid Mkts
Replies: 22
Views: 55433

Front Office P&L Checks for Illiquid Mkts

Does the "uncertain parameter approach" only assume the extreme negative results? (I don't know much about it but just googled it quickly and it looks a bit like stress-testing to me).If we started valuing OTCs using the worst-case senario everytime nobody would ever trade!! :-)
by hayes
August 18th, 2008, 8:44 am
Forum: Trading Forum
Topic: Front Office P&L Checks for Illiquid Mkts
Replies: 22
Views: 55433

Front Office P&L Checks for Illiquid Mkts

<t>I think that's fair.Although (IMHO) an illiquid OTC trade held for a long period should still normally be classified as a trading book position, because no matter how long you choose to keep it on your books it may require regular hedging. Plus in any given month, there is always the POSSIBILITY ...
by hayes
August 15th, 2008, 1:22 pm
Forum: Trading Forum
Topic: Front Office P&L Checks for Illiquid Mkts
Replies: 22
Views: 55433

Front Office P&L Checks for Illiquid Mkts

<t>Apologises Quantnewb, I'm afraid I must strongly disagree with you.Most back and middle office failures that result in a negative (and yes, positive...) P&L events are the result of lax controls and are usually accompanied by a lack of understanding of how front office actually generate their...
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