Following is a letter sent to the Editor of the Financial Times:
Sir
Let me see if I understand how proprietary trading works (¨Turbulence hits Deutsche proprietary desk¨ Financial Times August 2, 2006). I am a proprietary trader using my employer’s capital to invest heavily in the market. When the market is going up, I generate massive profits and my bonus improves. Yet when the market falls, we lose millions or worse, and blame market volatility. Sounds like moral hazard.
When I grow up I want to be a proprietary trader working at one of the big commercial banks.
Onésimo Alvarez-Moro
See article:
Deutsche Bank's equity proprietary trading desk, which invests the bank's own money in the stock market, made a loss in the second quarter – making it a high-profile victim of the market turbulence in May and June.
The loss, reported on Tuesday, dragged down the performance of the bank's equity trading activities while strong gains in fixed income trading and takeover advisory business brought the second-quarter earnings in line with market expectations.
See full Article (paid subscription required).
Posts
