The *NEW* Frank Coluccio Technology Forum Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : The *NEW* Frank Coluccio Technology Forum

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: ftth who wrote (35301)	9/17/2011 1:11:59 PM
From: axial	of 46821

[Opinion] Gillian Tett: This $2bn mess has uncanny historical echoes [Reading the parent article requires free registration. The link between ETFs and HFT has been discussed upstream] 'In May, I wrote a column that warned that the fast-growing world of exchange traded funds was heading for a scandal, writes the FT’s Gillian Tett. To be honest, my expected timeline was years, not months. But history is playing out faster than I guessed. We do not yet know precisely what has gone wrong at UBS; and, in particular, with the conduct of Kweku Adoboli, the ETF trader. But when regulators eventually unpick this $2bn mess, I would hazard that one culprit will turn out to be a pernicious cocktail of opacity, complexity and naive enthusiasm for innovation. For what has happened in the ETF world in recent years has some uncanny echoes of what took place with collateralised debt products last decade; and the fact that it was those CDOs which caused such terrible damage for UBS in 2007 just reinforces the historical echoes. And the bitter irony.' ftalphaville.ft.com Jim

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next