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The NYSE: Farewell to a Legend

Midas Mulligan Magoo
     
 
(Senior Neanderthal, 5,167
 
Points)
 on 2/10/11 at 11:42am
mom

We all know how the story started...

In 1792, under a sycamore tree Wall Street was born. In those days everything from potatoes to wheat and paper notes was traded under the sun, rain or snow. It was the sort of capitalism we pretend we have today, but have never actually experienced on our own skins.

Those were the early days of the New York Stock Exchange, before it came to be known as the NYSE.

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Hedging Your Bonus

Edmundo Braverman
      ST
 
 
(Human, 14,326
 
Points)
 on 2/10/11 at 6:00am
Hedgehog.jpg

I had to stop and think about this one for a few minutes. Eric Dash wrote this piece for Dealbook outlining how partners at Goldman Sachs (among other banks) have been hedging the non-cash portions of their bonuses since 2007. On the surface, it looks like an attempt to circumvent the "safeguards" put in place to keep top bankers focused on the long-term health of the bank and not just taking huge risks to juice a year-end bonus.

Basically what's going on is that top bankers whose bonuses include a hefty portion of illiquid stock are buying puts on their own bank's stock to offset the risk of their bonus stock dropping before they can sell it. Smart, right? But think about the implications for a moment. If you have a bunch of stock you can't sell for two or three years, but you've effectively hedged it with downside protection, do you really care if the company's stock drops?

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A Trading Story :Encouragement for the rest of us

ColdmanFachs
      ST
 
(Monkey, 32
 
Points)
 on 2/9/11 at 6:18pm
trading.JPG

I have decided to post my experience for what it is worth. I do not expect this to follow the standard format of posts in this forum I am merely here to present to all of you a story that could have helped me and given me encouragement in the darkest days of the sales and trading recruitment process.

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Investment Advisor Representative, Hedge Fund Sales, Capital Raising, Partner


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Registered Investment Advisor with emphasis on managed accounts and alternative investments, serves as exclusive agent for Texas based family of quantitative hedge funds utilizing proprietary algorithmic trading strategies. The advisor firm (NovoDyn Advisors) is looking to expand its marketing efforts to other U.S. regions. With outstanding annual returns, they are seeking equally exceptional individuals to partner in these regions.

Firm’s objectives are twofold: to gather assets for its growing roster of top tier alternative funds; and increase national market presence.

Compensation: 
No Caps
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The "Culture" of a bank

derivstrading
      ST
 
 
(King Kong, 1,350
 
Points)
 on 2/9/11 at 5:23pm
banking.JPG

Since we are slowly migrating from the interview stages to the post offer stage, the threads are starting to move much more towards XYZ vs ABC. I wanted to take time to talk about the "culture" question that keeps coming up. In particular kids asking about the culture of the bank.

My one piece of advice: you should not make a decision based on the perceived culture of the overall bank, culture is very desk specific. The culture of the cash equities desk is going to be different from the delta one desk which is going to be different from the flow equity derivs desk which is going to be different from the exotics desk. Same thing with FICC, the structured credit desk is very different from the flow credit desk.

Why is this so?

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Wall Street Should Bailout the S.E.C.

Midas Mulligan Magoo
     
 
(Senior Neanderthal, 5,167
 
Points)
 on 2/9/11 at 11:51am
sec red

If the Securities and Exchange Commission really is going broke, then Wall Street needs to step up and bail it out.

Yes. I said it.

Stop and read that statement over again. Let it marinate in your mind for a moment. Feel more than free to consider the source. Let's get into it a bit. Those of you who read my blog regularly know just how strongly I stand against any and all government entities, particularly with regards to markets.

Yet today, I am going to play the Devil's Advocate with my own demons and consider a possibility that I am often scared to think of...let alone speak of.

3 Reasons Why Wall Street Needs the S.E.C

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Sports Rivalry and overall Dook sh*^ty-ness

michaelj901
     
 
(Orangutan, 291
 
Points)
 on 2/9/11 at 10:42am
Danny Green Dunk

Tonight the #5 Blue Devils take on #21 Tar-heels. For the past few years this has been the ultimate series in college sports. The winner of the series has gone on to win the national championship for the past 2 seasons (sorry big east). This has me wondering what is the best rivalry in sports according to WSO?

The sort of rivalries that lead to quotes such as:

‎"The biggest fallacy about this whole Carolina-Duke rivalry is the 8-mile thing, as if proximity somehow indicates similarity. It's like assuming East and West Germany must be comparable since they were close to each other."

"The Cameron Crazies are the Clay Aikens of college sports fans-too loud, too geeky, too cute (debatable), and terminally annoying..."

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Altucher: Don't Go to College

Edmundo Braverman
      ST
 
 
(Human, 14,326
 
Points)
 on 2/9/11 at 6:00am

I can almost hear the collective gasps from the peanut gallery as you guys watch this, but Formula Capital's James Altucher thinks college is a sucker's bet. Well, not really. But he thinks it can be a really bad move to go straight from high school into college, and he makes some great points. Why shouldn't everyone try to start their own business, if for nothing else but the experience? I really want to hear your feedback on this one, and try to think outside the box a little. And, yes, Blodget is talking about investment bankers at 3:40. (note: disregard the video title - right video, wrong title)

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$53 Billion for High-Speed Rail

Virginia Tech @...
      O
 
(Chimp, 6
 
Points)
 on 2/8/11 at 2:17pm
high speed.JPG

The Obama Administration is planing on seeking funding for a $53 Billion high speed railroad project.

$53 Billion to Build High-Speed Rail Networks

$53 Billion Rail-Funding Plan

Having visited Europe several times I personally believe a national high speed railroad is long over due. I was just wondering where everyone else stood on this topic: Will it provide the same benefits that it does in Europe? Will it get funding when in a period of spending cuts? etc.

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Delta: Breaking Down the First of the Greeks

Ben Shalom Bernanke
      AM
 
 
(King Kong, 1,423
 
Points)
 on 2/8/11 at 1:59pm
delta.jpg

Hey guys, I've seen a few threads on options trading and how important the Greeks are to your overall options trade. I found a great read courtesy of OptionsHouse that breaks down Delta for those that are interested.

Delta is a numerical value that describes an option in several interesting and useful ways, such as how much the option’s price should move for a $1 move in the underlying stock, how much the option is almost exactly like its stock, and what the probability is of the option being in-the-money by expiration.

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Banker Levies...will they cross the pond?

Midas Mulligan Magoo
     
 
(Senior Neanderthal, 5,167
 
Points)
 on 2/8/11 at 11:52am
bank robber

I would like to get your opinions on something pretty simple but potentially far reaching. As most of our cockney monkeys are well aware, the British Treasury has been extremely active in the wake of the financial crisis. British banks suffered perhaps more than any and the result has been a hawkishness Adam Smith must be doing cartwheels over.

Today, the hammer came down. To the tune of £2.5 billion ($4 billion). That is this year's British bank levy, up a whopping £800 million from last year's head turning figure.

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Looking for 1 WSO Intern & 1 JDO Intern


Login to Start Application

I am looking for one WSO intern that can help me on a range of projects. One of the most important is the creation of standalone FAQ pages that address certain topics that repeatedly come up.

I am looking for someone that is an excellent writer, does not mind parsing through old threads to find the best ones for a given topic, and can think on their own. The person must also be serious about dedicating time to this project (10+hours/week) because it is not easy and will take many hours.

You'll be working directly with me (Patrick, founder of WSO) so if you do a good job I'd be happy to act as a reference for any future job interviews you're applying to and also give you personal career advice based on your resume, interests, etc. (limited to 5 hours of my time).

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  •  

Interview with Randall Lane

Edmundo Braverman
      ST
 
 
(Human, 14,326
 
Points)
 on 2/8/11 at 6:00am
tm15_cover.jpg

I've got a special treat for you today, guys. Randall Lane, author of The Zeroes: My Misadventures in the Decade Wall Street Went Insane and former Editor-In-Chief of Trader Monthly and Dealmaker Magazines, sat down to answer a few of my questions about his book, Trader Monthly, and the good old days of models and bottles.

Randall is now editor-at-large of Newsweek and The Daily Beast, and one of the most striking things about him (both in his book and in dealing with him personally) is his willingness to admit the mistakes he made and take responsibility for his part in the downfall of Doubledown Media. You just don't see that a lot these days, and it's refreshing when you do.

His book was one of the best I read all year in 2010, and pretty much kept me in stitches from beginning to end. What Michael Lewis did for the 80's in Liar's Poker, Randall did for the past decade in The Zeroes, and the book is a worthy successor.

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From $70mm to $8bn in 8 Years...and Now it's No More...Shumway Closes its Doors...

BankingRUs9
      IB
 
(Senior Orangutan, 471
 
Points)
 on 2/7/11 at 8:24pm
shumway-capital-letter.jpg

Shumway Steps Down

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Diversity in the workplace

leveredarb
     
 
(King Kong, 1,227
 
Points)
 on 2/7/11 at 3:24pm
colors.JPG

After SEO and various pro female programs, we now also have LGBT exclusive programs.

I am patiently awaiting the day of "Quant risk management for people who are not good math and do other things bad too", and "sales for autists".

The case for diversity is weak at best, studies in the work place are disagreeing on its impact and use, and the idea of meritocracy(an ideal stated by all banks as a core value) seems to have disappeared long ago.

Thoughts fellow monkeys?(When I say monkeys I include all monkeys, including females, LGBT, black, hispanic, native american and all other nationalities. In case you do not consider yourself human but have adopted an alternative existence as non human being I include you too.)

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Magic Power Bracelets and Assorted Scams

Midas Mulligan Magoo
     
 
(Senior Neanderthal, 5,167
 
Points)
 on 2/7/11 at 11:43am
cookee

Being that I'm having a Madoff flashback this past week...

Being that the NASDAQ hack has roughly 1/5th of all U.S. stock trade info on some geek's jump drive...

Being that Wall Street operates out of D.C. and that the whole world is pretty intent on passing its own failures off on someone else...

I think it's a great time to ask the question...

What is the Biggest Scam You've Ever Seen

I am prompted to offer this little nugget of madness as further evidence of why I can't be mad at the Jesus freaks for screaming about Sodom and Gomorrah...

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