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Old 11-28-2012, 02:13 PM #1
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Huh, only 1 in 6.

I honestly thought it'd be higher.

Wall Street Professionals Admit: Yes, Lots of Us Are Corrupt

So according to this article, about 1 in 6 wall street professionals have admitted to other people they would trade on insider information. I have little doubt that number would increase if actually given the opportunity.

What does this mean to us? What does this mean to a country in which 20% of its GDP is based on "financial products"? What are the implications to those of us who work jobs that actually produce goods and services?

Is there a benefit to having such a large financial sector? I thought the purpose of a financial sector was to allocate resources, but it increasingly seems the financial market has become several times removed from that purpose via buying and selling money itself. Is that an incorrect perception?
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Old 11-28-2012, 04:29 PM #2
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The financial sector is an extremely dangerous facet of modern economics. At best the industry provides services that don't cost a lot to provide, and it should be compensated on the actual physical value of the service, not the number of digits being pushed around.
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Old 12-04-2012, 02:37 PM #3
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Because no mechanic ever told something was broken on a customers car when it was not. No medical professional ever reco'd a treatment that was not needed. No medical professional ever submitted false invoices to medicare....


Gonzo, How many financial services companies have you worked for?
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Old 12-04-2012, 03:03 PM #4
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Because no mechanic ever told something was broken on a customers car when it was not. No medical professional ever reco'd a treatment that was not needed. No medical professional ever submitted false invoices to medicare....


Gonzo, How many financial services companies have you worked for?
A mechanic says something else is broken because then they get the benefit of "fixing" that as well (and getting paid to do it). A financial analyst gets what from admitting to consider insider trading? How can admitting that do anything but negatively effect them? What incentive do they have to lie? Broken logic is broken.
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Old 12-04-2012, 03:06 PM #5
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What are you fixing if you are replacing a part that is not broken only to make a sale to the customer?
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Old 12-04-2012, 03:14 PM #6
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What are you fixing if you are replacing a part that is not broken only to make a sale to the customer?
I guess I am confused as to your original point.

Are you claiming that "well it's okay that they cheat because everyone else is doing it, too"? The it's-okay-to-do-something-wrong-if-everyone-else-does-it ideology?
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Old 12-04-2012, 03:19 PM #7
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Sorry I did not explain it well let me try again. EDIT: iread your post wrong. Most analysts who engage in giving away MNPI ( material non-public information), from what I have read, do it to boost their ego. It boosts their ego because the fund managers and traders coddle them for the information.

Read the book confessions of a wall street analyst, they need to market their research just as the broker needs to market the services they offer.
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Old 12-04-2012, 03:59 PM #8
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Sorry I did not explain it well let me try again. EDIT: iread your post wrong. Most analysts who engage in giving away MNPI ( material non-public information), from what I have read, do it to boost their ego. It boosts their ego because the fund managers and traders coddle them for the information.

Read the book confessions of a wall street analyst, they need to market their research just as the broker needs to market the services they offer.
Nevermind.
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Old 12-04-2012, 04:08 PM #9
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Saying never mind is not how problems are solved.
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Old 12-04-2012, 04:52 PM #10
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Saying never mind is not how problems are solved.
It saves me from wasting my time which was clearly was I was doing.
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Old 12-04-2012, 04:57 PM #11
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Do you think that you don't have the intellect in you to better frame your point?
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Old 12-04-2012, 05:00 PM #12
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Do you think that you don't have the intellect in you to better frame your point?
The point of this thread is that 1/6 financial analysts admit to considering insider trading. You responded with "well mechanics lie to people, too".

This isn't a discussion because you haven't presented a real point...
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Old 12-04-2012, 05:05 PM #13
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You said

"A financial analyst gets what from admitting to consider insider trading? "

I made the point of

"do it to boost their ego. It boosts their ego because the fund managers and traders coddle them for the information."


No different than a white house intern leaking something to a journalist.

They want to feel the power of having the information people want.
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Old 12-04-2012, 05:16 PM #14
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You said

"A financial analyst gets what from admitting to consider insider trading? "

I made the point of

"do it to boost their ego. It boosts their ego because the fund managers and traders coddle them for the information."


No different than a white house intern leaking something to a journalist.

They want to feel the power of having the information people want.
As I already said, I misread your original post, so that post doesn't make sense in context. Again, we have established that 1/6 financial analysts admit to considering insider trade. What point are you trying to make other than "well mechanics cheat, too"?
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Old 12-04-2012, 07:02 PM #15
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Because no mechanic ever told something was broken on a customers car when it was not. No medical professional ever reco'd a treatment that was not needed. No medical professional ever submitted false invoices to medicare....


Gonzo, How many financial services companies have you worked for?
Last I checked mechanics don't work for "systemically vital institutions," and I can't remember the last time the aggregate failures of mechanics resulted in a large nominal shock to the economy.
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Old 12-04-2012, 07:24 PM #16
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Quote:
Originally Posted by drgonzo View Post
The financial sector is an extremely dangerous facet of modern economics. At best the industry provides services that don't cost a lot to provide, and it should be compensated on the actual physical value of the service, not the number of digits being pushed around.
Welcome to any commission based job.

I think you underestimate the cost of doing financial research, cost of the proprietary technology to execute an financial business, the customer service departments, managing multibillion dollar funds. That's not to mention the capital overhead, the cost of seats on the stock exchange, the cost of headquarter and branch offices, hiring the best analysts because otherwise your decisions will be complete ****. Plus they are doing this with all of your money so not only do they have to make a return to give to you, but also an additional return to keep for themselves.

Oh I forgot about all of the registration, filing, and other various fees the government and regulatory agencies charge them.

And if you are complaining about what they are paid regarding what it actually costs to do all of that analysis (don't even get me started on the cost of education) I would LOVE to see you justify what to pay a factory line worker.
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Old 12-04-2012, 07:48 PM #17
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As I already said, I misread your original post, so that post doesn't make sense in context. Again, we have established that 1/6 financial analysts admit to considering insider trade. What point are you trying to make other than "well mechanics cheat, too"?
You're not reading my post. They are not the ones making the trade, they are simply giving away the information for free to feel a sense of power.

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Last I checked mechanics don't work for "systemically vital institutions," and I can't remember the last time the aggregate failures of mechanics resulted in a large nominal shock to the economy.
last time I checks it wasn't analysts who work on the fixed income trading desk of an investment bank who held way to much risky debt on their balance sheet.

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Welcome to any commission based job.

I think you underestimate the cost of doing financial research, cost of the proprietary technology to execute an financial business, the customer service departments, managing multibillion dollar funds. That's not to mention the capital overhead, the cost of seats on the stock exchange, the cost of headquarter and branch offices, hiring the best analysts because otherwise your decisions will be complete ****. Plus they are doing this with all of your money so not only do they have to make a return to give to you, but also an additional return to keep for themselves.

Compliance is ****ing expensive, and will only get worse with dodd frank

Oh I forgot about all of the registration, filing, and other various fees the government and regulatory agencies charge them.

And if you are complaining about what they are paid regarding what it actually costs to do all of that analysis (don't even get me started on the cost of education) I would LOVE to see you justify what to pay a factory line worker. more than the lazy CEO who justs sits behind the desk herp derp
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Old 12-04-2012, 08:01 PM #18
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Last I chekced we were talking about "wall street professionals"
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Old 12-04-2012, 08:09 PM #19
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Well

Quote:
Originally Posted by TheSilentAssassin View Post
A financial analyst gets what from admitting to consider insider trading.
That was the response given to me so I based my next response off that.
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Old 12-04-2012, 08:13 PM #20
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I think you're just being uncharitable then. You know what he means.
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Old 12-04-2012, 08:25 PM #21
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How many assumptions should I be making?

How many cops would consider planting evidence on someone? Not asking how many would, but how many would consider it, ponder it, or think about it.

When a human is faced with temptation its human nature to think about what you can do. The majority know right from wrong, I would think most people on wall street would quickly think about the fcat that the SEC & FINRA would **** them in the *** if they were to engage and get caught.
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