Wednesday, January 11, 2012

Swiss Governor Resigns

After the profit his wife Kashya made on a currency transaction erupted into a row that would not die down. I read a very good article in 2007 by Phillip Hilderbrand in the collection published by the CFA Institute to celebrate the 50th anniversary of the Financial Analysts Seminar. In it he said that the potential Achilles' heel [in our financial system] is the risk management systems and processes of the 12 most important investment banks. These kind of statements usually catch my attention given my addiction to systems thinking.

Naturally when hell broke loose beginning in 2008 this phrase immediately sprung to my mind wondering how well the risk exposures of the systemically important financial institutions (SIFI) had been monitored by the regulators in the world's largest financial centres. Hard to go against greed, eh? In any case if you want to read that article and many others by folks like Marc Faber, Jim Walker, Peter Bernstein and Robert Shiller, just click on the following image to purchase this nice book.

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