| |
SPECIAL EDITION
Addressing Current Topics That Are Affecting Our Clients... |
 |
 |
 The Making of The Perfect Storm
There might be “50 Ways to Leave Your Lover” according to Paul Simon, but back in 1975 when he released the song, the seeds of the Perfect Storm for the current Credit Crunch were starting to germinate. And much like his album of the same period, the financial markets are “Still Crazy After All These Years.”
But Knowledge is Key to understanding what happened and why. It’s not our position to point to any one cause, but we did come up with 14 elements that may have contributed to the current situation dramatically affecting the world’s capital markets. No single event, in itself, could possibly trigger this historical situation – but taken together, we soon see in hindsight where the best intentions went awry, leading us down a path to the financial meltdown taking place.
This 9-page document will provide you, and your co-workers or employees, an easy-to-comprehend look at why we’re where we are today. Should you desire to read the sourcing documents, we’ve referenced them on the last page for your convenience.
Ken
President and CEO
|
| |
Excerpt from The Perfect Storm article
What Were/Are the Reasons For The Current Subprime/Credit Crunch?
There have been a plethora of reasons given by the media for what has created the subprime/credit crunch crises. However, in speaking with people within the industry, as well as friends and family, it appears not everyone understands the various reasons culminating in the current credit crunch.
No one reason, but the right blend of ingredients coming together simultaneously created the perfect storm. This article does not purport to explain all the details, but rather to summarize the different reasons --as reported by the media and those that were not -- and how each reason was a cog in the “perfect storm” wheel.
It is important to note that the article attempts to cite and reference the reasons presented by the media and does not necessarily indicate agreement or disagreement with them.
Background: Mortgages
Mortgages are broken down into three categories: Prime1, Alt-A and Subprime. Prime borrowers have a good credit history, provide a down payment on their home and can fully document their income. Alternative A borrowers (“Alt-A”), are just a drop below prime. For a variety of reasons, they may not be able to document their income (someone leaving a secure job and starting a new business or not having enough money for a down payment but with a good credit history). Subprime is below Alt-A and is characterized by a poor credit history, uncertain income and no down payment. These types of loans, by their very nature, will have higher defaults and therefore, demand higher borrowing rates.
FitchRatings estimates $1.4 trillion of subprime mortgages was originated from 2005 -2007.2 The heart of the subprime meltdown rests with the default of these loans.
Read the Complete Article »
|
| |
It’s Planning Time Again…
Putting together your 2009 Curriculum
With the downsizing in many firms, and Learning & Development folks facing the usual year-end duty of planning the next’s year’s training agenda, the “crunch” is being felt in more than one way….
Many HR Generalists are assuming multiple responsibilities, including spearheading technical, financial, executive, and other types of training. We often find the most common dilemma is “Where to start?”
Mapping out a learning curriculum can be daunting – especially if you’re not a specialist in all facets of the Capital Markets (who is ?). Time and knowledge constraints often defaults to a plan that is re-active versus pro-active when designing a comprehensive, cohesive learning strategy.
GFMI can certainly help guide you though this quandary:
Over the years, we’ve created Learning Curriculums which map the current Knowledge Level of participants to a logical learning path, equipped with pre-requisite courses and self-study (where applicable).
Things to consider include:
- How many hours can participants be away from their desks
- What can be covered by the E-learning already in-house
- How can Self-study and ILT dovetail to maximize both strategies
- Is pre-requisite knowledge needed before enrolling in a particular class
- What topics/courses are on a strategic knowledge path
- Can we hold two half-day courses to maximize our per diem rate
- Do we have managerial support and buy-in
- How frequently should we hold classes
- Is a Pre Knowledge Assessment warranted to gauge a baseline
As a client of GFMI, we offer Curriculum Planning, at no charge, as one of our many added values in working with your group. Whether you retain our services for all or a part of the learning events, or have some of your internal SMEs partner in conducting classes, it’s our way of partnering with you in achieving your educational goals.
Just ask! We’re here to help and provide you with ideas and examples…
|
|
| |
SPECIAL EVENTS:
Market Review Webinars and Seminars
Knowledge is Key and this one is FREE:
We mentioned in Ken’s column that “Knowledge is the Key to understanding the current Credit Crunch Crisis. And we’ve offered our Special Report of what elements contributed to the Perfect Storm.
UPCOMING WEBINAR:
We have a SPECIAL OPPORTUNITY for you to join us for a FREE WEBINAR on the topic, where you and your participants can join us for an open discussion and presentation on the current crisis.
Register now for this event at:
“Understanding the Current
Credit Crunch and Its Causes”
DATE: FRIDAY, October 24
TIME: 11:30am - 12:00 (or 12:30pm)
HOST: Ken Kapner
For registrations click here |
Once you are registered, we’ll email you the participant SIGN ON and DIAL IN information you’ll need to be a part of this knowledge event!
ON-SITE MARKET REVIEW SEMINARS:
If Webinars aren’t your best alternative, GFMI is offering to go one better – especially for those clients who have multiple employees who would benefit from learning more about what is currently taking place in the Capital Markets.
For a limited time only, we will arrange to present at YOUR SITE, a one hour, interactive Seminar at NO COST, hosted by Ken Kapner.
In this seminar, we’ll cover the multiple reasons for the Credit Crunch, the players, products and potential of what happened and why. We’ll also take questions and have an open group discussion to help your employees be in the know. Knowledge overcomes Fear, and GFMI’s goal is to assist you, in the best way possible, to keep your business going and emotions under control.
Click here to indicate YOUR interest in securing a FREE On-Site SEMINAR.
|
| |
Your Business Bootcampsm
“This is the most appropriate and well-executed training program that I have ever been on. Everything that we learned was relevant to working.” – comment by actual graduate
Recent market events have underscored the critical need for every financial organization to:
- Recognize and control risks across the entire organization
- Conduct independent analysis of credit rather than rely exclusively on external rating agencies, and
- Have all parts of the firm understand how they must interact with other parts to elevate overall control and performance, and to again, control risks
Your Business Bootcamp is a proven concept to get key players, from the most senior to junior, to understand:
- your business as a whole
- the function of each key business unit
- key players to interact with to make the business run more effectively
We all know that specialization and departmentalization are the “silo” norms for most financial institutions. Your Business Bootcamp is the key to getting everyone on the same page – and demonstrating it to regulators - without the downtime or potential negative publicity associated with other forms of corporate retreats.
Unlike any “off the shelf” program, Your Business Bootcamp is customized for your specific needs through a rigorous but rapid development & design process originally created for one of the largest global funds of hedge funds by Charly Gates, a derivatives market pioneer and former Co-Head of Deloitte & Touche’s Credit Risk Management practice.
The program applies focused and highly integrated learning activities, with GFMI’s comprehensive knowledge of risk management, portfolio management, capital markets, credit analysis, complex derivatives and alternative investments, combined with the specific elements of your business that employees need to know. Commercial banks, investment banks, asset managers, and other large financial organizations can all benefit.
We welcome the opportunity to discuss how this program might be tailored to your needs.
For more information drop us a line. |
|
The Asset Managers Forum / SIFMA, is conducting two upcoming learning events with GFMI at their state-of-the-art facilities in Midtown Manhattan.
These classes are the most cost-efficient, and practical means of providing hands-on learning by our top professionals, when you have 1 or a handful of folks who would benefit from these topics.
Offered at a discounted rate, the AMF/SIFMA provides an exceptional service to their members, in an engaging, rewarding learning atmosphere.
11/10: Advanced Equities
12/18: Fixed Income – Level One
For more information and registration, click here!
Seating is limited – so be sure to sign up early!
“A knowledgeable staff is a valuable staff” (from the AMF website) |
|
|
|
