What does it mean to be bonded.

What does it mean to be bonded. And Who needs to be bonded. Whats the process of being bonded. Who is excluded from being bonded.

"Bondage is the use of restraints for the sexual pleasure of the parties involved. It may be used in its own right, as in the case of rope bondage and breast bondage, or as part of sexual activity or BDSM activity."

Source: Wikipedia

HAHAH

Lol. Wow.

........................................

aww poor OP. Just say no, you've never been refused bonding and there is no reason you can't be bonded - unless you is some kinda hardcore gangsta and the judge said no bail (lol?)

by the way, if this question is from the firm i'm thinking of, one of former HR people there was telling me that it's a source of many lol-inspiring questions from applicants, haha.

take out the first "d" in "bonded" and I can tell you all about what it means

so u know how it feels?

If you are a member of Phi Delta Theta, Bonded has its own special meaning. It is a kind of heirarchy of the fraternity. It allows you to make other brothers do your will!! haha

my bond number is 173! Are there any brothers out there?

When I talk about Bonded. It means being insured by the bank.... I guess its a "fidelity bond" issued from the FDIC from what I have researched on the web. Can anyone please describe this process? Do all analysts have to be bonded or anyone that works in the financial industry is my question IF you do have to be insured by the bank, whats the process that's involved after you are hired?

Sorry you couldn't get into a fraternity Marcus. You missed out on quite a great experience.

I know dude, its one of my biggest regrets.

Its so hard to get into one too, if only I was a better man.

Does a requirement to be bonded make it harder to be employed? Employers would prefer to save the money by hiring someone who does not need to be bonded, right?

bump

I am guessing this is a question for accounting class.

Being bonded is a form of insurance for your clients. If they hire you and you steal from them, an insurance company will come in and reimburse them. It constitutes a form of "signalling" in accounting/economics terms.

I've never heard of this before in finance.

A surety bond or fidelity bond is usually taken out to insure a party against losses as the result of theft, negligence and or government issued fines... it all depends on the policy. So perhaps if you're at a small trading or asset management shop they want to protect themselves from you causing them to lose a shit load of money and their livelihoods in the process. I would think the firm would cover all of this and it would have little to do with you except maybe filling out paperwork.

Plumbers, electricians etc... are often bonded incase they royally fuck something up and destroy your house they won't be on the hook for $300,000... the surety company will cough it up.

Obviously its in the surety company's best interest to be prudent in who they are bonding... i.e. in above scenario, I doubt they would bond Jerome Kerviel at a trading outfit. If you've been convicted of certain types of, or maybe even any for that matter, crimes maybe they'd deny you.

It seems like a really odd scenario though... mind giving some more context? I cant imagine a company wanting to bond anyone involved on Wall Street with a 10 foot pole.. mainly because the mechanics/risk is probably way over their heads and there's a HUGE amount of risk involved.

I owned a business while I was in college and the state required I get personally bonded before they would issue me a certain type of license to conduct business. The surety company checked my credit and did a background check and quoted me a premium. So if I ended up... saying serving minors and got fined and couldn't pay and/or went out of business the surety bond was on the hook to pay the fines up to $100K.

Come to think of it... in a finance perspective... I worked on a restructuring deal sometime back where the firm was originating loans and getting the loans wrapped by a re-insurance company. As one of the requirements of the re-insurance, the C-Level executives and certain other management members had to be bonded. They had to take out surety/fidelity bonds upto a certain amount, so that if there was any type of fraud or anything, the re-insurance company would be beneficiary up to a certain amount. So for example, the company originates $100M of notional loans. The re-insurer guarentees the loans. 100% of the loans default as opposed to the 4% they assumed because the CFO was perpetrating a fraud and lending his cousins money. The loans end up defaulting and the re-insurer is on the hook for $100M. Well they happened to have gotten the right people bonded and the bond issuer/underwriter has to pay the re-insurer upto whatever the cap amount on the policy is.

Fuck that was boring. So there you have it. You now know everything I know about getting bonded.

Finally a straight answer. Although I have already researched this after the first couple of comments. It not only is refreshing to get a real answer but also brings back some confidence in asking questions on this forum again. Thanks for your time.

I cant imagine a company wanting to bond anyone involved on Wall Street with a 10 foot pole

The reason why I am asking is because I thought everyone in the finance industry ( including Wall Street ) that handles any thing that even has to do with money, asset management etc. etc. would have to be bonded. Is this true, or is it true for certain firms? Because It seems, from what you have wrote on your feedback that insurance companies dont want to have anything to do with people in wall street because of the risks.... really?? i would think the opposite? Enlighten me plz.