Join BearingPoint Managing Director and Senior Vice President of Global Markets, Peter Horowitz, as he explores the recent credit crisis and its contributors. With all the turmoil in the financial services space over the past few weeks, it seems that one must look at the source of the problem to really understand how it originated. It started out with a large amount of credit, coupled with lax lending standards and many heavy borrowers which created a heavy base of players, such as the mortgage owners and banks. It then trickled down to those that weren’t even familiar with the borrower or the actual real estate itself. This ‘mortgage value chain’ was the beginning of the turbulence we are all becoming so familiar with.
So what actually caused the crisis, especially within investment banks? The problem was too much leverage. These banks did not have sufficient capital to support the size of their ownership positions. When the position turned against them, both realized and unrealized losses, it wiped out their capital. It really comes down to the fact that their risk management systems failed the senior management of these giant organizations. It was so complex that the firms could not keep up with the changes.
BearingPoint has taken the proper measures to ensure their clients are being offered the most efficient solutions to deal with all the turbulence in the market. We offer a wonderful suite of solutions, such as our Risk Compliance and Security practices Trade Performance Solution that is assisting both buy and sell-side clients with all their risk-related issues. Our banking practice has also just introduced their Default Loan Loss Mitigation Solution, which is assisting clients with reducing the costs of defaults and foreclosures with investors. BearingPoint has been actively engaged with all their clients to ensure they are offering the most efficient and cost effective solutions to respond to this financial crisis and prepare for a successful future.
Fraud is an ever-increasing problem in the financial services field, and the growth of fraudulent behavior just shows how difficult it sometimes is to prevent this type of activity. With fraud management, especially in the insurance industry, you have the advantage of early detection.
The role of fraud management has evolved greatly over the years. Twenty years ago, there were five fraud investigators in the market, now there are more than 150. Fraud management is mainly organized in a traditional versus non-traditional method. To identify which is more appropriate for your organization, BearingPoint experts can identify the problem and offer an appropriate solution. With the rise in fraudulent behavior, expect fraud management to be a top priority in financial services over the next few years.
Join BearingPoint Business Advisor Delia Klause to explore the benefits of fraud management and why discovering fraudulent activity within your organization is so critical.
A podcast with Michele Trogni from UBS – Series 2 of 4
Our recent event, hosted by the Financial Times, focused on how we can cut costs and boost performance in this turbulent market. We turned to marketplace experts to give their input on ways to leverage new thinking on the latest strategies and technologies for reduction.
In this podcast, the second of 4 from our FT event, we have for you Michele Trogni, Global Head of Operations for the UBS Investment Bank, as she discusses what gets her most excited about the latest strategies and technologies for reducing operational costs. She talks about the importance of operational efficiency and how you can integrate this idea into providing excellent service delivery.
(Financial Times 2008 – Michele Trogni, Managing Director and Global Head of Operations for the UBS Invenstment Bank)
About Michele Michele is a Managing Director and Global Head of Operations for the UBS Investment Bank. She was appointed Global Head of Operations in January 2006 and has been with UBS Investment Bank & its predecessor for 20 years. Prior to her current role, Michele was Global Head of ESSOC IT and held various IT positions based in both Stamford and Chicago over the past 8 years. Michele started her career in London performing FIRC BUC roles in FCD, Operations Client Service positions and then working for the Derivatives & FI business in an IT liaison capacity.
A podcast with Sekou Kaalund from JPMorgan – Series 1 of 4
In our never ending search for new thinking we have gone on the road with our EPI thought leaders to their recent event hosted by the Financial Times in New York City called Reducing Operational Costs in Financial Services: How to cut costs and boost performance in a tough market.
In this podcast, the first of 4 from our FT event, we have for you Sekou Kaalund, Global Head of JPMorgan Private Equity Fund Services Business Development. Sekou explores some of the things executives can do to best leverage their resources and get the most efficiency. He also gives insight into the key questions that we need to be asking about outsourcing before we engage a provider with business.
(Financial Times 2008 – Sekou Kaalund, Global Head of JPMorgan Private Equity Fund Services Business Development)
Sekou is a Managing Director and global head of JPMorgan Private Equity Fund Services (PEFS) Business Development. He manages a global team responsible for new business development of outsourced administration solutions to private equity financial sponsors and institutional investors with portfolios of alternative investments.