Subscribe your tweeter to Techcrunch or subscribe its RSS reader, you can get a day a hundred links for news of new tech stuff. I'm a daily reader of the site, to learn more about the internet industry which I do not really belong to (but I'm working for one kind of company). It occurred to me that there're lots of innovations and new things happen to the industry, news that can make you feel overwhelmed like things happen with the financial industry, even when it's in the crisis. The innovations in the industry to me, sometimes change as fast as the Dow.
The difference about the two is that the Dow can go up and down extravagantly, 14k when I was in the States in 2007, to 6,000 and now 10,000. But with the tech stuff, it seems that there's no deterioration, at least like the financial ones. Isn't it worth working for the IT and technology industry than working for a financial firm where you spend days by days with money, having no control of it, indeed? For developers, they would answer 'yes', I think, for the meaning of the job.
However, most of the young internet and media companies (I'll do the research for the stats when having some time) are financed by the venture capitalists and private equity firms. Still, the entrepreneurs need financial firms.
P.S: the job for a risk manager in the banking/ financial industry and the job of any kind of 'risk manager' in the internet area is difficult and head-aching as equivalent. Or is it not?
Showing posts with label risk. Show all posts
Showing posts with label risk. Show all posts
Thursday, June 03, 2010
Wednesday, April 29, 2009
Saturday, April 18, 2009
American banks' liquidity ratios
American banks like Wells Fargo, Citigroup, JP Morgan are posting positive profit. Below are some of my findings in the thesis about Bank Liquidity Risk Management. Looking at the ratios of WFC back in September 2008, there could be a rational hope that WFC would be doing well.
Graphs were drawn based on figures from the Board of Governor of the Federal Reserve taken from November 2008.
Core deposit on the balance sheet of Citigroup has been very low since 2005 yet there was only problem to be seen when it came to the instability in the market.
Liquid assets comprises of trading assets, securities and papers, which could also explain one of the main sources of income in JP Morgan, Citi... who are active in buying and selling these papers.
The gap between the red and blue columns can be a measure in liquidity risk. And look at the red column, net loans and leases over core deposits of Citi!
(Non-core funding dependece = non-core liabilities - short-term investments/ long-term assets)
Again, Citi with a very high non-core funding dependence, the ratio to measure the degree to which banks fund long-term assets with non-core funding.
Graphs were drawn based on figures from the Board of Governor of the Federal Reserve taken from November 2008.
Core deposit on the balance sheet of Citigroup has been very low since 2005 yet there was only problem to be seen when it came to the instability in the market.
Liquid assets comprises of trading assets, securities and papers, which could also explain one of the main sources of income in JP Morgan, Citi... who are active in buying and selling these papers.
The gap between the red and blue columns can be a measure in liquidity risk. And look at the red column, net loans and leases over core deposits of Citi!
(Non-core funding dependece = non-core liabilities - short-term investments/ long-term assets)Again, Citi with a very high non-core funding dependence, the ratio to measure the degree to which banks fund long-term assets with non-core funding.
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