Reverse Finance
Reverse Finance
This chapter explains how intimate relations between the bank and its clients and investors strain the bank's boundaries. The intrusion of investors reversed the privileges of the trading room: from being an aggressively calculating center, it became subjected to calculations by investors; from being an engineer of finance, it became engineered by finance. Shareholders who intrude into the bank demand that banks be run as portfolios of securities are handled, which goes beyond the request that management rules be made public. They demand that the firm be nothing but a bundle of cleanly priced activities on par with, and comparable with, securities. This enforced porosity spurred a reaction among financial operators to engage in “reverse finance” to slow down the process of commoditization that threatened them.
Keywords: reverse finance, banks, clients, investors, trading room, securities, commoditization, financial operators
Princeton Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.
Please, subscribe or login to access full text content.
If you think you should have access to this title, please contact your librarian.
To troubleshoot, please check our FAQs , and if you can't find the answer there, please contact us.