Insider trading
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Originally Posted by Genghis9021
The "old boys network" ? If one's watched alot of 30's movies, say, 'It's a Wonderful Life" so such - sure. But the days of JP Morgan strutting down or being called down to the White House or 10 Downing are LONG OVER. Today, a man sits inside of an organization because he could deliver numbers (revenue & profit). The "old boys network" was blown up in the US in the early 80's by deregulation and mergers.
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There are a lot of people here in the UK who would not agree that the old boys network in the UK was eliminated by the de-regulation of the markets, including the stock market.
Old boy networks don't have to be based on the "traditional toffy-nosed posh boy", to mis-quote one of our members of Parliament.
Surely, insider trading relies on a network, old boys or not?
I can accept that the USA may be different but it does seem to be the centre (center!) of the world for conspiracy theories.
Quote:
Originally Posted by Genghis9021
Where do bankers fall into it ? Well, there's "bankers" and there's bankers. Retail bankers ? Commercial bankers ? Investment bankers ? There's a trajectory there, mathematically, from arithmetic to . . . stochastic calculus.
What did retail bankers have to do with this ? Almost NOTHING. They were well downstream and simply responding to regulatory and macro-economic forces.
Commercial bankers ? Similarly free of direct implication.
Investment bankers . . . that's more interesting. Small in size (Goldman Sachs makes a large fraction of the profit of HSBC but has 1/10th the number of employees) but very large in impact and reach. Investment bankers were smart enough to react to the changing conditions very fast. If some prefer the word "manipulate", so be it.
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These sectors of banking activity were far from separate from each other in the UK, witness all the effort now being made here to separate the retail and investment operations of the various brands of bank; firewalls (not the computer version) etc have been proposed but we are sorting out legislation to stop the investment bankers from bank-rolling their bets with the deposits of retail customers.
The pity is that the banks have convinced the government to take a lot of time over this.
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Dave
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