Many bank employees try to clear their consciences regarding what happened with preference shares and other toxic products, claiming they were unaware of the inherent risks involved in those investments, which they peddled left, right and centre. Many also hide behind the excuse that the responsibility lay with their superiors, and that they were merely foot soldiers carrying out orders to sell products indiscriminately, the risks of which were concealed or ignored. And the excuse of ignorance regarding the risks posed by these products is put forward to a greater or lesser extent across the entire banking hierarchy, from private banking managers to commercial banking staff, including branch managers. But neither the hierarchy of responsibility nor ignorance absolves any of them of blame, as we shall see later. (more…)
The party continues. Following the rallies on the American and European stock markets – particularly the Spanish one – it seems that most investors are set to stumble over the same old stumbling block once again. When? It’s impossible to say for certain, but what is certain is that the stumbling block is there and investors, giddy from such a rally, are running about like headless chickens. And what is this stumbling block that so many are set to trip over? Well, logically, it’s the valuations in developed stock markets, which are by no means cheap any longer – not to mention that they’re already starting to look expensive. Especially when we bear in mind that corporate profits are at record highs and interest rates at record lows, which inevitably brings us closer to the end of this cycle and the start of the next.
The concept is new and meets a logical and increasingly common need in a globalised world. It is common knowledge that Family Offices are companies or groups of professionals that are essentially dedicated to the management and control of the assets of one or several families, as well as to attending to all aspects that may affect these family groups, such as taxation, legal advice or assistance in family logistics and concierge services (concierging), among others. But the new figure that has appeared for the users of a Family Office (whether they are Clients of a Multi-Family Office, or owners of a Single-Family Office), is that of the Outpost FO, or global support network for a Family Office. 
It should be clear to everyone that what has happened in Cyprus may well set the precedent for the rest of the periphery, and we should therefore take a very close interest in the details (the devil’s favourite abode) of this ‘corralito’/confiscation. One of the concerns – obsessions, I would say – that peripheral investors should have at the moment is whether all bank deposits in Cyprus have been affected, or whether, on the contrary, only the money (an actual percentage yet to be calculated) that has actually appeared on their balance sheets. 