Larry Fink, BlackRockâs founder and chief executive, on Tuesday took aim at the âluxuriousâ trading profits enjoyed by Wall Street banks, saying that they have taken advantage of reduced competition to charge their customers more for even basic trades. âThere are fewer players. There is very little capital being committed by these dealers,â Mr Fink said. âTheyâre just taking the spread between the bid and the ask [the price gap between buyers and sellers] and they are making very luxurious returns,â he added. Mr Fink, who made his comments as BlackRock reported better-than-expected second-quarter results, added that he was looking at ways to reduce that spread to save his clients money. http://www.ft.com/cms/s/0/11977bd6-764a-11de-9e59-00144feabdc0.html It´s about time for a new powerhouse on Wall Street.
Soon Blackrock has a +2 trillion$ balance sheet. That's bigger then the FED? Masters of the universe.
.................................................................................................... This is exactly why I mentioned the need for a totally non-gamed world wide exchange.... One could utilize the BATS model....house it in any country in the world....whereby no more than 20 cents per 100 units is charged to any user.... The securities highway needs to be separated from the "gamers".... It is far too important....
LOL. From which of Fink's beach mansions did he utter that statement. Blackrock has used this crisis to get in bed with the government and the trillions that it has and continues to dispense as much as GS has. Blackrock is little more than an arm of gov't (actually its the other way around - gov't is little more than an arm of Blackrock).
http://www.wallstreetandtech.com/operations/showArticle.jhtml?articleID=218500933 Clearly the markets are in transition.... But can clearly reach to where I am speaking.... ......................................................................... Conflicts of interest are not "small considerations".....
Hey, they want more government intervention and prevention of anyone shorting? They're going to get fewer customer traders and less liquidity. The only people still able to trade freely are the uber heavily regulated market makers - liquidity providers - which include banks. There's a proposition to take away exemptions from market makers, while still imposing the enormous regulatory costs on them. That'll just mean that a bunch of market makers will quit and then then we'll have even less liquidity and wider spreads. You just gotta love these guys. Totally making love to the powers that be all night long and publicly bitching about the results in the morning.
Ummm. pretty much anyone trading futures and options and forex are free to trade whatever they want, long or short.
........................................................................................ An exchange highway that cannot be gamed....one that carries all tradable securities would be more like a utility complex such as a phone company rather than a bank or IB..... The securites would be all asset classes worldwide.....in the currency of choice....with WIKI securities fact based information.... The cost of freight would be the same per 100 unit name....maybe 20 cents.... Any qualified bank could attach its accounts with boiler plate software ie via BATS type.... .................................................................................. As one already knows ARCA, BATS, etc....are just basically label changers....This is a utility type function.... ................................................................................ Thus the answer to the question would be "utility type companies"....or the "Google model".... By the way..... This would also enable the streamlining of regulations and oversight, transparency, etc.... Most importantly this highway should be tax free in every aspect....namely in the interest of economic effiiciency worldwide....