(<—- big bang)

I am sure you heard the loud pop today as the new CDS protocol came into effect. Called the ‘Big Bang’ because of the cataclysmic effect it will have in the credit derivatives world, it is meant to address some of the (potential) shortcomings of the old documentation, trading and settlement standards and pave the way to a better regulated, more transparent, less risky, more polite and god-abiding marketplace. Of course the timing was not great, since the Easter long w/e and general wait-and-see-what-the-hell-is-going-on-with-this-equity-rally attitude in Credit means that not many were interested to try the new thing on..My personal opinion is that the whole thing could have been communicated a bit better, with a bit more style, colour, celebrity endorsement and so on. Some pretty cheerleaders would have also been appreciated, but hey…times are tough.

On another front King Lloyd Blankfein showed why he leads Goldman Sachs. The man is cool. Very smooth indeed. I liked the way he handled the -obligatory these days- rigtheous-sign-bearing-protesters/interrupteurs. Top Notch Mr.B.

But more than anything I liked this part of his speech, addressing the new compensation standards in banking: ”..employees should be paid an annual salary plus deferred compensation, based on performance…employees should have most of the compensation in deferred equity, and executive officers should be required to retain the bulk of the equity they receive until they retire”. 

An observation:

• I would love to lock these stock prices asap! Here is the beauty of the man’s mind (and I mean this). Regulators, politicians and the general public hate bankers so much and at the same time are so short-sighted and -let’s admit it- a bit naive, that will welcome these non-cash payment as a huge victory. GS employees, on the other hand locking their bonus at historical low stock levels will be laughing in 3 years time. Being the King, Mr. B with his 100m bucks comp over the last 3y is lauching already (honest, look at the pic)

We close in a much more sombre tone, with our prayers to the so many horribly unfortunate people of Abruzzo that suffered and are still suffering from the terrible earthquake that hit them. We hope that they will be able to rebuild their lives as much as possible and as swiftly as possible.

Finally, an unusual for CapitalWhispers message regarding the uniformed thugs that have stricken down Mr. Tomlinson during the G20 London riots. Hang these lying cowards high