To: SeekAndFind
Policy needs to be: if a bank is judged "two big to fail", then it is too big to be allowed to exist. Bank regulators would then order the bank to unwind and shed any derivative and options holdings, and then be ordered to split into multiple independent pieces.
And a trader who blows more than a million dollars gets barred from ever working for a financial institution again, either directly or indirectly.
10 posted on
05/12/2012 11:31:05 AM PDT by
PapaBear3625
(In a time of universal deceit, telling the truth is a revolutionary act. - George Orwell)
To: PapaBear3625
And a trader who blows more than a million dollars gets barred from ever working for a financial institution again, either directly or indirectly. What if you lose $100,000 on ten separate occasions?
What if you lose $1,000,000 one day and make $2,000,000 the next? Or make $2,000,000 today and lose $1,000,000 tomorrow?
What if all your losing positions in one day add up to $1 million but your P&L for the day is up $1 million?
18 posted on
05/12/2012 12:10:50 PM PDT by
Toddsterpatriot
(Math is hard. Harder if you're stupid.)
To: PapaBear3625
A million in the business is insignificant. Something along the lines of a percentage of a firms capital or an absolute number like 50mm. You get a bad day in the market with a billion dollar position and you can lose million just on lower valuations. Unrealized as it were.
25 posted on
05/12/2012 1:47:07 PM PDT by
wiggen
(The teacher card. When the racism card just won't work.)
To: PapaBear3625
Policy needs to be: if a bank is judged "two big to fail", then it is too big to be allowed to exist. Bank regulators would then order the bank to unwind and shed any derivative and options holdings, and then be ordered to split into multiple independent pieces. Sounds like Anti-Business, Big-Government, LibTard talk to me. Yes, that's sarcasm.
36 posted on
05/14/2012 5:02:12 AM PDT by
Wolfie
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