If Morgan Stanley and Goldman don't get it, who will? (Reuters)

By | April 11, 2011

Back from vacation…

This is a new twist on an old story.  We’ve all been wondering since 2008 how the smartest people on Wall Street didn’t see the credit crisis coming (well, some did but most obviously did not).  This story highlights a dispute between MS and GS regarding an OTC derivatives transaction back pre-crisis and debates whether anyone will want structured products anymore.  Yes, there will still be demand for structure products, but the world’s appreciation for transparency and standardization will ensure that cleared products will take over in many cases.

“It’ll have to become a lower margin, higher volume business,” said Kevin McPartland, a senior analyst at consulting firm TABB Group who focuses on derivatives.

Read the full story at Reuters.com

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