1 June 2018 FT — Articles to Read

1 June 2018

Question: According to “BestLife” on MSN, what is the biggest regret in life most people have?

Deutsche’s woes mount as US unit is added to federal list of ‘problem banks’ – Pg. 1

  • …weaknesses serious enough to threaten their survival, a black mark that threatens efforts by its new chief executive to turn around the struggling German lender
  • The FDIC’s “problem banks” are those with financial, managerial or operational weaknesses that endanger their financial viability.
  • Germany’s largest bank has struggled to recover from an aggressive expansion just before the global financial crisis, as a combination of tougher regulation and a legacy of crisis-era scandals have made its core business uneconomic

Volcker change promises trading boost – Pg. 12

  • Big Wall Street banks will be given a change to rebuild their trading arsenals under a softened version of the “Volcker rule” on risk-taking, but they are expected to stop short of the kind of buccaneering bets they routinely made a decade ago
  • The new approach would replace a regime under which the burden of proof is on banks to demonstrate that they are not engaged in proprietary trading, which is banned, and are only facilitating client trading as market makers
  • The banks with the biggest inventories of assets held for trading are JPMorgan Chase, BoA, Morgan Stanley, Citigroup and Goldman Sachs, …
  • Many banks have spent much of the post-crisis period winnowing down their holdings of stocks, bonds and derivatives, partly because they feared that regulators would take a dim view of any position that appeared to represent a proprietary bet on the direction of prices. There is contested evidence that their decisions have contributed to a drop in market liquidity

Answer: 76% of participatns in the survey said it was not fulfilling their ideal self.