1/12/2015
Curtain call for the Equity Market?
Stanchart is closing down its equity operation in Asia! More than 200 staff will be laid off. What does this mean? A major bank cannot make money or even losing money in the equity market? It must be. No banks would close down a profit making business.
Is this the beginning for more banks closing down their equity businesses? When banks are finding it tough to make profit in equity trading, what are the chances of the retail traders? You mean the retail traders are still around, still in business and trading with profits while the banks are closing shops? Does anyone want to know, bother to know, what is happening to the retail traders, to all the players including broking houses and remisiers in the equity business?
Who cares? It is no one’s business. The equity business can go bust, life goes on. Equity is only a small part of a bank’s business. Some banks even offer free or near to no commission for this service.
What about derivatives? Are derivatives related to the equity business and dependent on the existence of an equity market? Would the collapse of the equity market lead to the collapse of the derivative markets? Can the derivative market exist without the equity market or a dysfunctional or dormant equity market?
The immediate problem, maybe not a problem, is the loss of jobs in the Stanchart and maybe other banks following suit, to close down their equity business. Who would be the people laid off? Theoretically it would be those in the equity division. Or would a bank choose to lay off Singaporeans in other departments to save the jobs of foreigners in the equity division? To retain the foreigners from the equity division, a bank can transfer their foreign hires to other departments by getting rid of Singaporeans there. Possible? Likely?
What would be the case when banks start to close down their equity divisions? What would happen to the stock market when more banks take the path of Stanchart?
Kopi Level - Yellow
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10 comments:
It is good news that an FT Indian infested bank is closing down.
How much tax subsidies and incentive schemes is StanChart getting from Singaporean tax payers right now?
"What would happen to the stock market when more banks take the path of Stanchart?"
RB
But the stock market had been in worse times than now what, like in 1997/1998. Then what happened after that? Were there protests and riots in the streets? Did the Sinkie opposition became ready to be govt? Did majority Sinkies vote for opposition? Nothing of that sort happen, tio bo?
So why should it be any different now, u tell me lah, even if more banks take the path of Stanchart?
The current operations of stock market is dominated by computers which has turned them into casinos. It is unsustainable and will go bust.
The old stock market operated on a different basis, with proper regulation unlike todays deregulation to allow the financial rogues to rob the innocent retail traders. It is no longer a stock market operating under sound fundamentals of the business of a stock, profit and loss etc.
Once it goes down, it will not recover. China is offering an alternative system without computer trading and derivatives for the financial world, a kind of back to basics.
The American model is flawed and a con job.
Heard they are so stupid that they loaned money to Sentosa Cove house buyers inflated amount. The developer jack up the price and then give discount to the buyers. Both buyers and developers worked as one. When loans are released, the houseowners just defaulted on the loans and money "earned" is shared. The only loser is Stan Chart who is operated mainly by you-know-who!!
This is foreign talents at work. A piece of genius.
Equity market? and I thought there is only debts market here.
Haha, kitlengkia Kena fooked
@RB:
>> What would happen to the stock market when more banks take the path of Stanchart?
It will become faster and more efficient. The robots and algorithms are quickly replacing the humans---as they will slowly throughout the SERVICE and MANUFACTURING industries.
Those who own and operate the robots will score. Those who don't, won't. Just Google "robotics startups in Singapore" and have a look at what is going on.
No need for expensive robots. The social robots are here and very cheap to maintain.
NUS and NTU are in collaboration to develop social robots.
@RB
Actually the mechatronic robots are VERY CHEAP to maintain and create given that they are way more PRODUCTIVE than humans.
Social robots from the tert institutions are actually MORE EXPENSIVE because many of they come out of the institutions with entitlement mentality (i.e. "the world owes me a living") and only will work if offered BIG MONEY, and get mad when some similarly qualified "robot" from a Turd Wurld cuntree can do the job better, faster, cheaper and also not talk so much nor complain, than the local variety ;-)
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