Why Derivatives are so Hot

Recalling a chapter from Traders Guns and money Beautiful lies on sale side how derivatives are misinterpreted or mis-sold, It’s blog simple trying to figure out the hierarchy of the trading floor. There are Sales people – they lie to clients. Traders lie to sales and to risk managers. Risk managers ? they lie to people who run the place – a small correction they think they run the place. The people who run the place lie to shareholders and regulators 🙂

Few days back I did Derivatives derivatives so many, resembles outstanding derivatives with the top 5 banks of the world, here is some basic background for my non financial market friends about derivatives.  Continue reading “Why Derivatives are so Hot”

Management reaction during CRISIS

English: The Business Process Management Life-...

Every time I read Traders Guns and money there are new things to explore.

The management of the firms is a succession of fads during trouble times, just like the recent and ongoing crisis. The Fads become a mixture of homely common Rusk package as science and in comprehensible.

Diversification Lets do several things that we don’t know anything about badly
Sticking to the knitting or focus Lets get back to doing what we once did if any body can remember what it is and how to do it J
Decentralization Massive duplication, confusion and creation of thousand of petty empires
Matrix structure Every body reports to every body, no body knows who they work for & there is no accountability
Flat Organization Managers who can not manage now manage tens of direct reports.
Business Process reorganization A process by which cut everything that is essential, leaving only every thing that you don’t need.

Not to forget lot of buzz words like CRM/KPI/TQM/B2B/B2C/Transformation/best of breed/competitive advantage/reinvention/templates.