Muschamp Rd

Insanity: Now Citi Group

November 24th, 2008

If you have any internet access at all, you would know this is a bad, bad time to be working at a Financial Services company. I got an email from someone at E&Y the other day, but today’s 20+ billion bailout of the Citi Group caught me by surprise and I’m a pessimist.

I’m actually a pretty good stock picker and I like a lot of Financial Service companies, mostly Canadian banks, but some international institutions. I didn’t have any money in Citi Group directly but even indirectly this is a huge blow to the industry. There was already an article about the massive number of unemployed analysts especially on the research side, the side I tried to get a job on after my MBA.

My attempt to achieve the CFA® charter looks less and less like a good decision, I just don’t care to study anymore. Period. And I think I’m going to fail the exam in a few weeks, sadly I’ve studied hundreds of hours and actually know a lot of the material quite well, I’m rusty though and I just can’t concentrate. I plan to take some time off, but I’m no quitter so I’ll be back at it sometime in the future.

The people I’d hoped to study with this time have also been disappointments, you’re pretty much on your own as a CFA Candidate unless you’re in the industry already and have co-workers who are committed, too many people read about it and underestimate how difficult the exam is.

In other news Porsche totally fleeced a bunch of hedge funds and other money managers on VW stock options. Good to see someone has the money and brains to make a fool of some of the fools on Wall Street and in New Haven. Maybe leverage will become a four letter word next year.

Of course what Porsche did would have been illegal in some markets with stricter disclosure rules and maybe it was even against the CFA Charter, what with manipulating the market and all, but it was still amusing and I too have my contempt for the so-called “vulture capitalists”. I’m believe in building companies rather than speeding their demise.

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