MIchael Lewis’s book returns trust as a virtue with value in finance. This from a blogger who has been ranting about Banks playing games with the public for the past five years. The optimism comes from a leading bank; Goldman Sachs, a subject of previous evisceration, debating within its ranks their long term survival under the following conditions: High Speed Trading networks are built to take advantage of customers. HST is best exploited by small agile firms, not a Goldman, who have no customers but game Goldman’s customers. Goldman brings to the table customers who are taken as lambs to the slaughter which is a long term loser proposition for the bank. Lewis’s expose puts Goldman in a better light than its competitors for at least acknowledging the problem beforehand and evidently helping to promote a trustworthy solution. The beauty of his expose is that customers being taken advantage of are professional and now understand how they have been gamed so that the market resolves the excesses without depending on a compromised and really useless SEC.
No comments:
Post a Comment