The number one reason bankers worry at night is increased financial regulation.
Kids and families only made the list of a few bankers’ stresses when Financial News asked bank execs what’s keeping them awake at night, and in particular, what will continue to cause sleepless nights in 2011.
A bunch also mentioned worrying about banker-bashing politicians. Predictable.
Kids only made the list of a few financial execs, like the CEOs of Algo Technologies and Atrium and, Mark Burgess, CIO at Threadneedle, who all mentioned their kids before market convulsions.
And one Morgan Stanley executive, who said: “Our three boys, especially number three, who is teething.”
9: Bill O’Neill , Chief of Emea at Merrill Lynch Wealth Management: “Where is all that printed money going to go? If it is not to drive product and service price inflation higher in the next year or two it will almost certainly be the rocket fuel for a number of asset market bubbles in the future. Debatably, it may already be behind a new rush into metals and emerging market assets regardless of type. I also have an uneasy feeling that when central bankers assure us that they have the means to reverse policy if needs be that means through a higher cost of money, in other words interest rates.”
8: Todd Ruppert, President of international investment services at T Rowe Price : “I think ex-UK prime minister Harold Macmillan said it best when asked this question, “Events my dear boy, events”. It is to be expected that the unexpected happens with increasing regularity. There are numerous issues facing all of us, the ramifications of which are unknown, from unprecedented regulation to sovereign debt concerns to sustained high unemployment to exogenous shocks, and the list goes on.”
7: Samir Assaf
, CEO of global banking and markets at HSBC: “The dogmatic and negative approach that some politicians and regulators have towards the role and size of the banking industry. This destructive stance could have an unwelcome impact on the economy and on growth, leading to a significant risk of protectionism and serious conflict.“
6: Edmund Truel, Founder of Pension Corporation: “Irrational behaviour by private equity firms nursing huge losses and equally having to “use it or lose it” with new money.”
5: Bob Parker
, Senior adviser at Credit Suisse: “Trying to identify the next black swan. Should we be worrying about geopolitical issues such as North Korea and Iran, fiscal issues such as the Bush income tax cuts not being rolled over, monetary issues such as the risk of the Chinese “over tightening”, banking issues such as identifying how much eurozone sovereign debt the banks own or restructuring issues such as where investors will be forced to take writedowns on euro debt?
4: Alasdair Haynes
, CEO Chi-X Europe: “The fear that politicians and legislators will turn back the clock on market liberalisation out of some misguided notion that this will protect the man in the street from financial crises. Instead this will hobble markets, restrict liquidity, make capital raising harder and ultimately hurt the very people in whose name they purport to be acting.“
3: Andreas Utermann
Global CIO, RCM (part of Allianz Global Investors): “The primarily politically motivated discussions around the break-up of the euro. It’s very similar to the classic prisoner’s dilemma problem in game theory. A collaborative solution à la euro leads to a more optimal (albeit far from perfect) environment for wealth creation than the alternative of competitive devaluations and even worse macro-economic mismanagement that would surely follow the demise of the euro. Gains from currency devaluations would be short lived and in the end, just like in the prisoner’s dilemma problem, everyone would be worse off. The stuff of nightmares.“
2: Marino Valensise, CIO
at Baring Asset Management: “I often go through my collection of old bond certificates, many of which are framed on the wall, complete with the original dividend coupons. As has previously happened during times of high inflation and/or defaults, there is a danger that today’s bond certificates will end up framed on the wall. Don’t buy any US Treasuries, Bunds or [Italian government bonds] BTPs just yet, you may find some at the local antiques shop in a few years time.“
1: But the best answer by far was from Jon Moulton , venture capitalist and founder of private equity firm Better Capital. He didn’t even bother listing anything market-related. He answered in just two words: “The wife.”