Trading places ?
Bloomberg News reports that nowadays, with regulatory demands escalating and record-low interest rates curbing profits, a rapport with rulemakers and investors is often prized above trading prowess in the hunt for a chief executive officer.
'We are shifting away from the laissez-faire, gung ho, everything-goes-to-maximize-profits culture', said Alan Beaney, investment director at RC Brown Investment Management in Bristol, England. 'We as shareholders need the banks to make money, but they have to do so in a fair manner. Dealing with regulators is absolutely essential'.
The next generation will have to reshape the firms to comply with higher capital standards and more complex rules, while resolving legal issues and improving profitability. New leaders are unlikely to have allegiance to the trading activities.
To access the complete Bloomberg News article hit the link below: