29 November 2015

Falling off a Blog

Hugh Cumberland - Colt

14Posts 43,425Views 4Comments


This community space has been established to keep participants up-to-date with Finexpo conference and exhibition news, and as a forum for discussion of the key challenges facing the capital markets industry

Where were the shareholders?

09 March 2009  |  3896 views  |  2

Who’s to blame for the destruction of bank shareholder equity?

Those nasty bankers, with their eye-watering bonus plans?

The regulators, who didn’t spot the bubble when it was blocking out the whole sky?

Those self-serving politicians who oversee the regulators and maintain the health of the economic system that the bankers feed in?

What about the shareholders? The executive of any body corporate is answerable to the shareholders on most matters, especially shareholder value.

So, where were shareholders when shareholders’ equity was being destroyed? The truth is that most shareholders are too small to have a voice. But we do have guardian angels looking over our investments for us. Our plan sponsors. Our fund managers.

We pay them. So what did they do to preserve our capital, growth and income?

They will no doubt argue that they were entitled to rely on the regulators to ensure that our investments were protected.

That’s a bit like leaving your car unlocked outside your house, with the keys in the ignition and trusting that the police will stop it from being stolen.

Hugh Cumberland

Product Strategy Director, BT GFS

TagsRisk & regulationPost-trade & ops

Comments: (2)

David Hough - GreenKite Consulting - manchester | 09 March, 2009, 13:14


In  investing ,what goes up must come down, the bubble burst and it always will at some point, and it will hurt.








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Mary Freeman - Simplify IT Limited - London | 13 March, 2009, 13:59

Equally, why are they not applying the requirements of the Companies Act 2006 to claim fiduciary recompence from the directors who failed to consider the long term impact of their decisions on success the company?

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Solution Management for Financial Services including ultra-low latency, SWIFTNet, Proximity, Target2Securities, Extranet, Community Cloud

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