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

A resurrected version of the repealed Depression-era Glass-Steagall Act could invite the opportunity for a new breed of old-school trading houses breaking away from the regulatory leash of a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 The bipartisan group of lawmakers wants a new version of the law that was repealed in 1999 by lawmakers including McCain that would divorce commercial banking activities insured by the Federal Deposit Insurance Corp.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.

These Investment Bankers Have the Write Idea (eFinancialCareers)

It’s not uncommon for bankers to write books on banking or business (or have someone ghostwrite their books), but crossing over into the literary fiction realm is also an ongoing phenomenon. Here are some who’ve found success in a second career, sometimes even juggling both.

BNY Mellon Builds Wealth Management (Bank Investment Consultant)

BNY Mellon Wealth Management has announced key appointments as part of a two-year recruiting effort to build its sales force and add private and mortgage bankers in top U.S. wealth markets. The hires include a sales director and a senior mortgage banker in Washington, and seven wealth professionals in Philadelphia.

Hedge Fund Manager Admits to Ponzi Scheme (FINalternatives)

Jason Konior faces up to 20 years in prison for wire fraud after pleading guilty to running a $2.9 million Ponzi scheme. He was charged with robbing investors to pay his own expenses and to cover redemption requests from earlier investors, and lying to clients of his Absolute Fund Advisors and Absolute Fund Management, promising to match their investments nine times over.

Battling the Boss from Hell (eFinancialCareers)

Some bosses are self-serving or inept, and can make your job unbearable. Here are six types and tips on how to combat them.

BlueBay Hires Ex-Fitch Credit Chief (Hedge Week)

BlueBay Asset Management, which oversees $55.7 billion for institutions and wealthy individuals, has appointed David Riley as partner and head of credit strategy, reporting to Chief Investment Officer Mark Poole. He formerly served as head of sovereign ratings at Fitch Ratings.

Madoff’s "Criminal Soul Mate” Says She’s Innocent (FINalerternatives)

Bernard Madoff's Austrian banker denies she had a "clandestine" agreement to introduce the man behind the massive Ponzi scheme to wealthy investors. Sonja Kohn testified in London to defend herself against civil claims brought by the liquidator, Grant Thornton.

Buzz Around the Office

Don’t Let the Sharks Eat You!

This GoPro camera reveals what it could be like to be eaten by a Mako shark.

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

AUTHORNatasha Gural Insider Comment

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