$2B a year in cost. That is how much I think our industry is carrying in avoidable costs (cf. last week’s post). But who cares?
Certainly the regulators don’t really care if the banks have extra costs, but they should be careful what they wish for, or avoid doing.
Credit is the oil that makes today’s wheels go around. If that has costs, the banks will find ways to optimise; for example, throttling the payments they send to their Nostros. Some do this already. That is the thin end of the wedge.
CLS Bank is a rare case of successful cooperation. It does just three things and it does them really well. The EU ought to take note.
Forget the Stones and Sympathy for the Devil, we bankers need more Beatles and a little help from our friends aka the Goldman Sachs alumns and other smart guys steering our central banks.
Mssrs. Carney, Draghi and Dudley, who is at the NY Fed and oversees the US Fedwire, are all alums of Goldman Sachs. Often derided as a force of bad, perhaps it could do some good.
Lessons Learned: The Bankers’ Plumber is also a Goldman alum, but such is the lot of the plumber that I operated in the engine room and never met these guys.
I have a big phonebook, but no line to these guys. So, I will leave it to the ideas to do the talking.
The presentation in this link explains how we might build on known things that work in FS and create a Global Netting Hub.
I hope you think the ideas are good; if you do, please “like” post, share it widely and comment if you want to.
Are available on the 3C Advisory website, click here.
The Bankers’ Plumber’s Handbook
How to do Operations in an Investment Bank, or not! Includes many of the Blog Posts, with the benefit of context and detailed explanations of the issues. True stories about where things go wrong in the world of banking. Available in hard copy only.
Cash & Liquidity Management
An up to date view of the latest issues and how BCBS guidance that comes into force from Jan 1 2015 will affect this area of banking. Kindle and hard copy.
Hard Copy via Create Space: Click here
Amazon UK: Click here
Amazon US: Click Here
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