82,890
edits
Archegos: Difference between revisions
no edit summary
Amwelladmin (talk | contribs) No edit summary |
Amwelladmin (talk | contribs) No edit summary |
||
| Line 111: | Line 111: | ||
Firstly, we can take it as a given that ''no [[prime broker]] will adjust margins if it thinks it really doesn’t have to'' — why have a difficult conversation now, if things might be better in the morning? If you are running a large [[Margin excess|excess]], generally, you are covered — the security package bites; possession is nine-tenths of the law and, ''In sha’Allah'', things will look better in the morning. | Firstly, we can take it as a given that ''no [[prime broker]] will adjust margins if it thinks it really doesn’t have to'' — why have a difficult conversation now, if things might be better in the morning? If you are running a large [[Margin excess|excess]], generally, you are covered — the security package bites; possession is nine-tenths of the law and, ''In sha’Allah'', things will look better in the morning. | ||
It is only when the customer wants to ''take away'' that excess that you feel truly at the point of a pitchfork. The answer to the question, “okay so, if the margin was so important why didn’t you ask for it till now?” is easy: “''Because I had it in the bank.''” Who | It is only when the customer wants to ''take away'' that excess that you feel truly at the point of a pitchfork. The answer to the question, “okay so, if the margin was so important why didn’t you ask for it till now?” is easy: “''Because I had it in the bank.''” Who breaks a butterfly on a wheel? Who upsets a [[platinum client]] by asking for something she already holds, albeit lightly? | ||
If, and only if — ''when'', that is to say — the client asks for all its excess back must we confront our demons and deliver bad news. At that point, we can decide, ''do we blow up our relationship, now or not?'' | If, and only if — ''when'', that is to say — the client asks for all its excess back must we confront our demons and deliver bad news. At that point, we can decide, ''do we blow up our relationship, now or not?'' | ||
A prudent merchant defers the decision about which hill she is to die on as long as she can. | A prudent merchant defers the decision about which hill she is to die on as long as she can. To be sure, that calculus looks very different ''before'' the world implodes in a thousand points of light than it does with the benefit of cinematic hindsight — but that is what closing submissions are for. To be sure, however it looked at the time, CS got that calculus wrong. Perhaps they didn’t quite realise the moment of Zen that was upon them: if so, this is a different kind failing: of expertise, not commercial management. When you gingerly ask to adjust your margin up and the customer says, “leave that with me” and, with the same breath, asks for all his money back, your defcon alarms should be ''blaring''. | ||
To be sure, CS | |||
===Formal versus informal systems=== | ===Formal versus informal systems=== | ||