Covered warrants

warrant.jpg
Warrant cover.

The banks are in the grip of an orgasm of creative products to balance their budgets. The clients don’t care a toss about the budgets of the banks but they would like their creativity to be directed towards good service at market cost – European market cost – not Italian cost. The banks that deny finance to small enterprises are the same ones that lend thousands of millions of Euro to the Tronchettis and the Benettons. Our money, the money of us the current account holders, of us small scale investors. The managing directors of the banks for too long have been responding to the laws of politics and of the relationships of the gentile salons rather than to the laws of the market.
I’m publishing this letter that is one of the many received about the behaviour of the banks.


“I am turning to you as you are one of the few voices providing warnings to savers about the vexations created by the banks in relation to the employees who are giving financial advice (if you can still call it that…)
The latest “invention” of the bank where I work in view of the recent tendency for the interest rate to go up, is aimed at those clients who already have a variable rate mortgage. We propose an operation “to protect against interest rate risks” that involves selling them variable duration "covered warrants", that should give the client subscribing to them, a regular income if the interest rate goes above a fixed threshold.

These covered warrants, at the end of their natural life then have zero value. They are timed to end more or less when the original mortgages are paid off.

Up to here there would be nothing particularly strange about the operation. But this sale is accompanied by a loan to the client equal to the value of the covered warrants. In practice, first the client pays out high interest payments on the mortgage then they have to take on the acquisition of these warrants that will go to zero (and maybe give them no income if interest rates don’t go up much) and as well as that they pay the interest on the loan to buy them.

You can’t imagine the daily pressure to sell these products (together with the others, often out of date that are already in the catalogue!) I wonder where all this will go in the future. Unfortunately, our clients trust us and we have to be so thick-skinned to reassure them of the benefits of the products and lie to them from the morning to the evening. If we don’t sell these products we are put to one side inside the bank.

The budgets are just “monstrous” and if you don’t manage to achieve them you get terrible reports and no bonus.

I try to resist this pressure but I assure you for the last few years now my nerves are all over the place and above all I’ve started to hate this work that I once enjoyed. The only consolation is when I manage to place better products that don’t damage the client. But that rarely happens.
Thank you for allowing me to let out my anger.
Thanks again.
M."


Posted by Beppe Grillo at 12:44 AM in | Comments (4)
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Hello,

Someone can point me on where on this website i can request for authorization for a publication of this interesting opinion on our alternative financial blog http://financialfeed.blogspot.com/ ?
Any advise is really welcome.

Thanks a lot in advance

Mark

Posted by: Mark | May 13, 2006 06:29 PM


Wireless World: Love, Mom
CHICAGO, May 12 (UPI) -- This Mother's Day, show mom you really care. Send her a text message -- with love. Experts tell UPI's Wireless World that increasingly, moms are using text messaging and mobile phones to manage their communications with family and friends. Whether a text message -- rather than flowers, a personal visit and quality time -- will suffice is up to your mom and her alone, and any information provided herein is for educational purposes only. This columnist should not be held responsible for any adverse reactions from your respective mothers.

"The first annual T9 Texting Outlook Survey has found that 30 percent of moms are texters," Erin Gifford, a spokeswoman for Tegic/T9, a wholly owned subsidiary of America Online based in Seattle, told Wireless World. By Gene Koprowski


Posted by: Ted Smith | May 13, 2006 03:45 PM


capitalia
fineco
banca di roma
capitalia asset management
fineco asset management
romagest


ecco cosa fa questo gruppo bancario:

nel 2000 sono stato truffato nella banca di roma per fondi collocati dalla sua controllata romagest, soldi messi in un fondo comune di investimento e mai resi.

sto' scrivendo la storia qui:::

http://bancadiroma.splinder.com

da 6 anni aspetto i miei denari e non me li hanno ancora restituiti

Posted by: guido eugenio | May 12, 2006 12:29 AM


ORA CHE DICONO I PARANOICI??
SE CI LAMENTASSIMO SULLE SCHIFEZZE VERE CHE HA FATTO ANZI CHE SU TUTTO INDISTINTAMENTE!
ROMA - Il presidente del consiglio, Silvio Berlusconi, non ha violato l'articolo 3 della legge sul conflitto di interessi relativamente alla norma sui contributi statali destinati all'acquisto di decoder televisivi inserita nella legge finanziaria 2006. Lo ha deciso l'Autorità garante della concorrenza e dei mercati (Antitrust) nella riunione del 10 maggio.
Il procedimento, ricorda l'Antitrust, era stato aperto il 22 dicembre 2005 anche nei confronti delle società Mediaset, Rti e Solari.Com, dopo la segnalazione di alcuni parlamentari. Nel corso dell'istruttoria l'Autorità ha dovuto valutare se la concessione del contributo in esame, derivante da un preciso atto di governo riconducibile direttamente al presidente del Consiglio, fosse idonea a determinare un privilegio specifico a favore delle predette società sul mercato della tv a pagamento e su quello dei decoder digitali, con danno per l'interesse pubblico.
A giudizio dell'autorità, «anche ipotizzando una perfetta corrispondenza tra l'incremento del numero di decoder incentivato dal contributo pubblico e l'aumento di utenti di servizi televisivi a pagamento, l'esistenza di un'incidenza specifica e preferenziale sul patrimonio delle società di proprietà del presidente del consiglio risulta difficilmente configurabile in considerazione dell'attuale struttura del mercato e della significativa quota (superiore al 90%) detenuta proprio dal principale operatore (Sky) rispetto alla generalità delle imprese, ivi comprese le società Mediaset e Rti, potenzialmente beneficiarie degli effetti derivanti dalle misure di incentivazione statale».
Per quanto riguarda infine la società Solari.com, società attiva tra l'altro nel settore dei decoder e controllata da un familiare del presidente del consiglio, considerata la sua quota di mercato inferiore al 5%, l'autorità non ha ritenuto che il contributo pubblico possa aver determinato un vantaggio specifico e preferenziale per l'azienda medesima.

Posted by: Matteo Rizzi | May 11, 2006 08:26 PM


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