Eugene Rotberg: Market

“Never penalize those who work for us for mistakes or reward them for being right about markets. It will go to their heads, is counterproductive and, in any event, material compensation will not correlate with their ability to predict the future next time.”

Eugene Rotberg

“'The only perfect hedge is a Japanese garden': Speech to the National Association of Corporate Treasurers." http://www.generotberg.com/speeches/1990s/The%20Only%20Perfect%20Hedge%20is%20a%20Japanese%20Garden.pdf. (1990)

Time , Future

“A war takes place; an earthquake occurs; a flood of a magnitude not seen in a hundred years washes over the land; a cartel falls apart; oil prices quadruple; tax laws change, and the market in which you had an open position, or even hedged, moves in a magnitude not only unforeseen, but totally outside past models. They always do. You are in trouble.”

Eugene Rotberg

"Testimony Before the U.S. House of Representatives Committee on Banking, Finance and Urban Affairs." http://www.generotberg.com/speeches/1990s/TESTIMONYCommitteeBanking100198.html, October 1 1998

War , Law , Change , Past

“Banks are unprofitable because they make too many bad loans and their good loans have little profit in them. They also have the dubious advantage of an awful set of accounting conventions—“a rolling loan gathers no loss”—that permits them to mask their mistakes and hold assets without marking their value to market. Spreads are narrow, costs are high and there is too much reliance on insured deposits, with the accompanying incentive to take risks with someone else's money.”

Eugene Rotberg

“Speech on Banking Systems for the New York Times and Glass Steagall." http://www.generotberg.com/speeches/1990s/Banking%20System%20article%201990s.pdf. (1990)

Money , Loss

“We design performance measures to cover-up error. They are called benchmarks. We make decisions based on: Will we be found out? Discovered? Identified as the wrongdoer? Do we really want to have to explain this stuff to someone who spent his or her life in sales or marketing?”

Eugene Rotberg

Informal remarks on the occasion of the 50th anniversary of the Eurobond market." http://www.generotberg.com/speeches/2000s/on-the-occasion-of-the-50th-anniversary-of-the-eurobond-market.html (2013)

Life , Error , Decision