The Finance Professionals' Post

Debate: Does Having your CFA Demonstrate Academic Ability?

The answer for many of you, especially CFA charterholders, will unequivocally be yes. Yes, it’s a grueling process; those who don’t have academic skill couldn’t do it. Yes, many don’t pass the first time around; (remember, the 10-year average pass rates for Level I, II, and III are 39%, 44%, and 59%) those without persistence, skill, and some degree of intelligence wouldn’t make it. Yes, many professors of finance and related fields have CFAs, so CFAs are clearly represented in the academic field. But, does that really mean that having your CFA is a demonstration of your academic ability?

Poll: Investing in Nuclear Energy

With strong support from Congress and the Administration and 13 applications for 22 new reactors pending at the Nuclear Regulatory Commission, it is often repeated that the United States is poised for a “nuclear renaissance.” However, recent reports from Moody’s and Citigroup have raised serious concerns about the extent to which nuclear power can be revived in the US and other nations without either extensive support from ratepayers or taxpayers—or both. Even as others debate the pros and cons of nuclear power, investment professionals will need to start making their own financially driven decisions.

Poll: The Bonus Outlook for 2010

The press is full of mixed news about bonuses on Wall Street: According to eFinancialCareers, half of the finance professionals surveyed expect their bonuses to grow this year. But, Options Group, an executive-search and consulting firm, predicts that bonuses will be down 22% to 28%. What are you expecting this year?

Poll: The Bush Tax Cuts

With the Bush tax cuts set to expire at the end of the year a debate rages over whether they should be extended, modified, or simply allowed to expire. Some favor extending the cuts universally, while others—including President Obama—favor extending the cuts for the middle class and poor while letting them expire for those earning more than $250,000 a year. A recent national poll on the issue reveals a nation divided on the issue, what do you think?

 

 

Poll: Elizabeth Warren

Elizabeth Warren, a Harvard law school professor and an expert on consumer bankruptcy, has overseen the panel monitoring the Troubled Asset Relief Program (TARP) since October 2008. She has continuously advocated for a new consumer financial protection agency that would attempt to reform credit and lending practices. President Obama officially signed the agency into legislation, creating the Bureau of Consumer Financial Protection. Threatened by this new monitoring entity, banks are trying to weaken the bureau by influencing the selection of the agency’s director. Many people support Warren as a candidate to lead the agency, while banks worry that she will be too harsh with them.

Poll: The Goldman Sachs Ruling

On April 16 the SEC filed charges against Goldman Sachs for defrauding investors in a mortgage-backed collateralized debt obligation. The SEC alleged that Goldman Sachs omitted and misstated crucial facts about the CDO, most importantly the role of the hedge fund firm, Paulson & Co.’s direct involvement in the selection of the portfolio and bet against the deal. Three months of uncertainty over the case ended last week when Goldman Sachs agreed to make a $550 million settlement with U.S. regulators. While some watchdogs are disappointed that the settlement is much lower than the estimated $1 billion, others believe that $550 million is enough to stir a change and influence other institutions to employ better business practices. Tell us what you think. 

Poll: Volcker Rule

Pundits are divided on the impact of the Volcker Rule: the editors of the Economist argue that the reform will not have much effect on alternative investors, but Jennifer Rossa, writing for the Wall Street Journal, defends the Volcker Rule, pointing to new research that shows that stopping banks from having private equity arms may not be such a bad idea.

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UK Poll Shows Despised Business Jargon

The Daily Telegraph’s online article called “‘Thinking Outside the box’ is most despised business jargon” discusses results from a survey of 2,035 adults in the UK on what business language they found to be pointless. This is called “buffling”—using language that “does not say anything important or useful.” 

Results of Survey on Government Financial Market Intervention

On October 9, 2008, NYSSA launched a survey on the Government Financial Market Intervention plan. The survey was designed to gather feedback from our members and some nonmembers on their opinions about the effectiveness of the Intervention and if the bailout was sufficient to meet the need. Other information gathered included the changes in investment habits of respondents firms, reaction to proposed regulation changes and the availability of cash.