Is the Job Market Ripe for the Revival of the Rogue Trader?

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A resurrected version of the repealed Depression-era Glass-Steagall Act could invite the opportunity for a new breed of old-school trading houses breaking away from the regulatory leash of a divided banking system.

U.S. Sens. Elizabeth Warren, John McCain, Maria Cantwell and Angus King are seeking the 21st Century Glass-Steagall Act to sever commercial and retail banks from their investment banks and trading desks. The bipartisan group of lawmakers wants a new version of the law that was repealed in 1999 by lawmakers including McCain that would divorce commercial banking activities insured by the Federal Deposit Insurance Corp. from institutions that offer services such as investment banking, insurance, swaps dealing, hedge funds and private equity.

"Despite the progress we've made since 2008, the biggest banks continue to threaten the economy," Warren, a Massachusetts Democrat, said in a press release.  "The four biggest banks are now 30% larger than they were just five years ago, and they have continued to engage in dangerous, high-risk practices that could once again put our economy at risk.”

But by ditching the assets of an FDIC insured institution you also dodge the rigorous rules that were piled on after the financial crisis, when the behemoths had to reorganize as bank holding companies under the watch of the FDIC and the Federal Reserve.

None of the big banks are autonomous leaders in one sector, and through myriad mergers and combinations, they have grown into giants that have more in common on the product offering front with a modern-day Procter & Gamble than an early 20th century Kidder, Peabody. Goldman Sachs went from leading the tide of investment banking as the white knight of M&A to diving into the dark pools of Knight Capital.

Let’s imagine the 21st century comeback law takes the industry back in time. Would it kill jobs at the coveted big banks or would it create more breakaway firms that invite the return of rogue traders? Such firms cannot borrow from the Fed, making them a great job opportunity for the candidate who feels stifled by the "regulated utility" feel of the modern, insured bank.

The barriers to entry for opening your own prop shop are very low, thanks to cheap and widely available technology. You can even find directions online.

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List of the Day: Why You Didn’t Get Hired

Most employers provide little if any feedback to applicants they reject. Here are some possible reasons why you might have been passed by.

  1. Your resume didn’t make a clear connection between your skills and accomplishments and the employer's needs.
  2. You made grammatical or spelling errors on your application materials.
  3. You failed to explain and highlight your personal contributions in your current or previous job.

(Source: AOL Jobs)

Follow the author on Twitter @natashagural

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