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If it was a level playing field then what you said is true, i.e. provide better services in the asset management space. However, the reality is more complicated
by tinkerrr 10y ago
If it was a level playing field then what you said is true, i.e. provide better services in the asset management space. However, the reality is more complicated.
Firstly, financial education. How many asset managers like pension funds want to put part of their portfolios in hedge funds even when their returns are sub-par. The industry is very opaque in terms of disclosing returns, and many indices are biased upward due to survivorship bias.
Secondly, the lobbying to keep the taxes at a low, and other tax loopholes, onshore and offshore, mean that the profits made by the industry are taxed lower than what would be made by a manufacturing firm.
The industry as a whole will never be truly free-market due to many regulations and laws, so your point about having a universal solution for everyone to invest across borders is probably not going to be realized in the next several decades at least.
- mbrock 10y agoNot to mention the staggering history of fraud and manipulation for which JPMorgan Chase has paid many billions of dollars in settlements and fines... They got 25 billion dollars from the US government in bailout, then they paid 13 billion dollars as settlement for fraudulent practices pre-2008, and so on and so on... It's total ridiculous ideological stupidity to say "duh, they earn their money on the free market."
- tinkerrr 10y agoTrue, but remember that JP Morgan doesn't run a hedge fund, and neither do other banks like HSBC that have been caught laundering money for drug cartels and got away with a few basis points of revenue in fines.
- maxerickson 10y agoIt runs one of the largest hedge funds. http://www.cnbc.com/2014/05/09/jpmorgan-flagship-hedge-fund-stalls.html http://www.cnbc.com/2014/05/09/jpmorgan-flagship-hedge-fund-...