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*[[Archegos#Formal versus informal systems|Formal versus informal systems]] | *[[Archegos#Formal versus informal systems|Formal versus informal systems]] | ||
*[[Archegos#The broker that didn’t bark in the night-time|The broker that didn’t bark in the night-time]] | *[[Archegos#The broker that didn’t bark in the night-time|The broker that didn’t bark in the night-time]] | ||
*[[Archegos# | *[[Archegos#Juniorisation of the meatware|Juniorisation of the meatware]] | ||
*[[Archegos#People’s front of Judea|People’s front of Judea]] | *[[Archegos#People’s front of Judea|People’s front of Judea]] | ||
*[[Archegos#Red flags|Red flags]] | *[[Archegos#Red flags|Red flags]] | ||
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Now whether this is what actually happened or not is, mostly, beside the point. But it points to another potential source of destabilising risk: a fellow broker who cares less about the [[commercial imperative]] than you do. Even a small block sale could have triggered, or amplified, a catastrophic run on concentrated holdings in a thin market with a single, incapacitated bidder. | Now whether this is what actually happened or not is, mostly, beside the point. But it points to another potential source of destabilising risk: a fellow broker who cares less about the [[commercial imperative]] than you do. Even a small block sale could have triggered, or amplified, a catastrophic run on concentrated holdings in a thin market with a single, incapacitated bidder. | ||
=== | ===[[Juniorisation]] of the [[meatware]]=== | ||
{{quote|''Below them, and in conjunction with material reductions in headcount across the IB, overtime each and every PSR and CRM analyst became responsible for an ever-increasing number of clients. As employees left PSR, they were replaced with less experienced personnel, a process that one witnessed referred to as the “juniorisation” of PSR. PSR was thus hollowed out, both in terms of the experience of its personal as well as the attention they could devote to their duties. | |||
:—{{CS report}}}} | |||
There is a slight tension to this one because, on one hand, it seems utterly right that the systematic [[downskilling]] that CS, and every other broker, has carried relentlessly since the financial crisis ''must'' massively deprecate an institution’s ability to deal with existential crises like these ones: the [[JC]] has railed at length about the the folly of [[downskilling]] and [[outsourcing]] elsewhere, for exactly this reason. Yet, if there were heroes in this tale, they were the canaries in the coalmine — exactly those juniorised staff who said things like this hedge fund analyst in CRM: | |||
{{quote|“Need to understand purpose of having daily termination rights and ability to cause margin [with] 3-days notice on swap if client is not amenable to us using those rights.”}} | |||
I mean, out of the mouths of babes. There was quite a bit of human wreckage at CS in the aftermath, but you really hope the author of that email wasn’t part of it. | |||
===People’s front of Judea=== | ===People’s front of Judea=== | ||
Compare and contrast: | Compare and contrast: | ||