November 29, 2013

If I were an asset manager, I would remain in the shadows. But, if one of “the risky”, I would scream my heart out.

Sir, Gillian Tett, referring to the opinion of Helena Morrisey, the head of Newton, writes “Asset managers told to come out of the shadows” November 29. 

And Ms Tett agrees with it, though I do not understand why. If I were an asset manager, having been saved from utter disgrace by generous quantitative easing programs, as so many of them have been, I would probably lay very low… hiding even deeper in the shadows.

No! If there is anyone who should come out of the shadows screaming their hearts out that should be all The Risky. And I refer to those who because they are perceived as risky, and are therefore already naturally being discriminated against by banks and markets, are now also being odiously discriminated against by bank regulators, by means of capital requirements for banks based on perceived risk.

But, perhaps since these “risky” are never invited to Davos and similar high strung places, Ms Tett might not have the same interest in them. And this is sad, and dumb, because if these “risky” were given a fair access to bank credit, they might very well turn out to be the safes of tomorrow who can provide Ms Tett´s pension fund with the income needed to keep her in style, in older days.