| Topic Name: |
A Question for the Bankers |
| Message Name: |
The degree of effect |
| Date Posted: |
05/27/2000 |
| In Reply To: |
Hey original poster:
I know that this response is kind of late, but I just wanted to acknowledge the fact that you don't know shit about S&T, and that's why you have a negative bias on the profession. ok, I'll agree with you that the bid-ask spreads and information asymmetries are tightening up. But, let me ask you this- aren't they always tightening up in any business? Hey, what about your good ole Investment Banking business? I guess fees don't tighten up in there either, right? Sure, you could say that technology threatens a lot of S&T jobs, but doesn't it threaten IB jobs also? Who says that your road show can't be e-mailed as a powerpoint presentation.
As long as society exists, there will be a need for traders, regardless of the level of technology. Even if trading becomes fully automated, you need someone there to understand the trading systems and to establish the parameters of the system. So, I offer you this suggestion: take your aimless bullshit, shove it up your ass, and go to all the B-school outings that you can find. There, you can talk your bullshit with your colleagues and get laughed at. Oh yeah, I'm in derivatives trading, in case you were wondering.
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| Message: |
Is much larger on trading than it is on banking. Banking processes are much less standardized than trading algorithms. You can't write a program to do m&a, you can write programs to calculate duration, convexity, etc... Remember that firm that Goldman bought that did all of that electronic trading (I forget the name), but they use account for 10% of the volume on the exchanges on a daily basis and most of it was automated.
The reason why iBanking wont be automated is because most of it is a qualitative exercise in the story behind a company. While trading has a bit of that, most of support staff in trading aren't working on qualitative issues, their busy measuring exposure, calculating margin calls, etc... All stuff that can be replaced with automation.
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