Comments on: Counterparties: Another day, another city http://blogs.reuters.com/felix-salmon/2012/07/11/counterparties-another-day-another-city/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: realist50 http://blogs.reuters.com/felix-salmon/2012/07/11/counterparties-another-day-another-city/comment-page-1/#comment-41751 Fri, 13 Jul 2012 02:36:11 +0000 http://blogs.reuters.com/felix-salmon/?p=15972#comment-41751 @Ben – no problem on the link, I didn’t assume it was intentional.

I agree with your point that just taking people who are already 40 or 50 year old specialists and then promoting them to be general managers of a business unit doesn’t really solve the problem – it just pushes the same problem down to business units instead of the whole company. I think the more interesting idea is encouraging people to spend time in different functional areas. At a minimum, there are ways to make sure that finance and operations people actually talk to sales people (or, even better, a customer) on occasion, which should benefit how a company functions as well as developing additional skills. Like everything, there’s the need to guard against going too far the other way, with too many people in long meetings that don’t have a point.

Unfortunately, some of this mindset has fallen by the wayside because it was easier to implement when the expectation was that people would stay with 1 company for an entire career.

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By: Ben Walsh http://blogs.reuters.com/felix-salmon/2012/07/11/counterparties-another-day-another-city/comment-page-1/#comment-41725 Thu, 12 Jul 2012 16:53:22 +0000 http://blogs.reuters.com/felix-salmon/?p=15972#comment-41725 Agree with you on value of most HBR posts and their tendency to be filled with mgmt speak banality. Apologies for the busted link – not intentional. You are right that a bit of mockery was intended, but not complete. There’s some value to this idea but I think the real problem is that often the combination of these various business units is itself too complex. Adding a layer of generalists won’t help that problem too much.

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By: MrRFox http://blogs.reuters.com/felix-salmon/2012/07/11/counterparties-another-day-another-city/comment-page-1/#comment-41718 Thu, 12 Jul 2012 15:04:10 +0000 http://blogs.reuters.com/felix-salmon/?p=15972#comment-41718 If I were Ina Drew’s lawyer I’d hope JPM tries to welch on my client’s $20Mil bonus. For, that would give her (and me) the ethical green light to lay waste to the entire top tier of JPM’s management – and come away with more than $20Mil for doing so.

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By: TFF http://blogs.reuters.com/felix-salmon/2012/07/11/counterparties-another-day-another-city/comment-page-1/#comment-41710 Thu, 12 Jul 2012 14:02:07 +0000 http://blogs.reuters.com/felix-salmon/?p=15972#comment-41710 The headlines this week have been rather confusing…

Monday we read, “Great News, Spain announces austerity measures to get its financial house in order, markets set to rise in response.”

The last couple days we read, “Doom and Gloom, Spain announces austerity measures that will ruin its economy and send unemployment ever higher, markets plunge in response.”

One way or the other, Spain is in trouble (and the US as well). Did anybody really believe they had an easy way out?

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By: MrRFox http://blogs.reuters.com/felix-salmon/2012/07/11/counterparties-another-day-another-city/comment-page-1/#comment-41691 Thu, 12 Jul 2012 09:05:22 +0000 http://blogs.reuters.com/felix-salmon/?p=15972#comment-41691 Good Lord – Please, not here. Ban the fu…….! Now!

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By: realist50 http://blogs.reuters.com/felix-salmon/2012/07/11/counterparties-another-day-another-city/comment-page-1/#comment-41674 Thu, 12 Jul 2012 01:37:32 +0000 http://blogs.reuters.com/felix-salmon/?p=15972#comment-41674 @Ben – the HBR blog article is a busted link as well as (I assume) the intended subject of mockery with your Michael Scott comment. I read it yesterday and thought it was actually a good article, and I’m a person who thinks that over half of the HBR articles/posts that I’ve read are utter crap full of management-consultant speak with little if any real world applications. This one makes a very interesting point that too many big companies keep everyone below the CEO in narrow functional silos, when having business unit heads who get a broad perspective is good for both company performance and executive development.

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By: realist50 http://blogs.reuters.com/felix-salmon/2012/07/11/counterparties-another-day-another-city/comment-page-1/#comment-41673 Thu, 12 Jul 2012 01:25:35 +0000 http://blogs.reuters.com/felix-salmon/?p=15972#comment-41673 Perhaps Krugman shouldn’t throw so many insults at CNBC since he works at an institution that these days has dramatically more prestige than intellect.

As a case in point, today Matt Levine at Dealbreaker explains how municipalities suffered a loss due to LIBOR manipulation – http://dealbreaker.com/2012/07/libor-man ipulating-banks-used-baltimores-tax-doll ars-to-help-pay-off-your-mortgage-or-som ething/ . The NY Times/Dealbook post – to which Matt links – doesn’t explain that the underlying issue was a divergence of LIBOR/SIFMA and instead includes phrases like “many [municipalities] borrow money through investment vehicles that directly derive their value from Libor” which sure sounds like someone who doesn’t understand an interest rate swap trying to write a description of an interest rate swap and missing the mark a bit.

All of this, BTW, is just a few weeks after Gretchen Morgenson had a featured Sunday piece, her gist of which was “municipalities are getting screwed because they are having to pay money to banks today on scary derivatives” and the reality of which is “banks borrowed at variable rates, changed that borrowing to a fixed rate through interest rate swaps, and today should be paying the exact same total interest cost that they expected because short-term interest rates have gone way down”.

If the NYT can’t hire some business/finance reporters that understand math and their subject matter, they ought to just focus on deal scoops and work a deal to license content on any complicated topic from the WSJ, the FT, or the Economist.

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