Barclays And Deutsche Bank: A Tale Of Two Investment Banks

Link: https://www.forbes.com/sites/francescoppola/2018/10/24/a-tale-of-two-investment-banks/#70a819b15f6a

Date: Oct 24th, 2018

Media: Forbes

What happened?

Barclays and Deutsche Bank are leading European banks by total assets (in billion €) and they have released their third-quarter results.

Although at first glance, these results look good, as their profits increased, poor performance in their investment banking divisions is bad news for both banks.

Whom and where it affects?

It affects both banks in Europe, and therefore, their investors, shareholders or clients.

What sort of public or private institutions are involved?

Barclays is a British multinational investment bank and financial services company headquartered in London; and Deutsche Bank is a German investment bank and financial services company headquartered in Frankfurt, Germany.

Why is it important for Banking and Finance?

As these banks are the most important banks of Europe, their bankruptcy or their financial problems, can cause a financial instability in the European economy or even systemic risk.

What do you think will be the consequences in the foreseeable future?

There is a possibility that Deutsche Bank merges with Commerzbank (also German bank). Bolting the two “ailing German giants” together might perhaps create a bank large enough to compete with the Americans, though it’s a risky strategy - mergers of this kind can have the unfortunate effect of amplifying the weaknesses of both banks. In case this happened, Barclays could suffer too much pressure and it wouldn't resist to compete succesfully once again with the American giants.

Key words:

Investment bank, Shareholders, Investors, Europe, Deutsche Bank, Barclays, Results/performance.

What is Robo adviser?

Technological trends in the banking sector

Should you let a 'robot' manage your retirement savings?

 Link: http://www.bbc.com/news/business-41159944

Date: 8 September 2017

Media: BBC News

• What happened?

The news “Should you let a 'robot' manage your retirement savings?” talks about efficiency by replacing people with robots in the financial sector. There are contradictions in this issue, since 68% of people prefer the computer system to plan their retirement since it is cheaper than a human advice. Another reason is many people feel uncomfortable talking about their finances.
On the other hand there will be a significant increase in the use of these technologies in the USA and Chinese.
Finally, this new technology will allow manage adequately the retirement savings, because a lot of people could be spending their retirements in poverty, and Governments are concerned that this might then place an unsustainable burden on welfare systems.

• Whom and where it affects?

For the time being, the robo-advice affects to the small investor trying to save for a comfortable retirement and also the banks for the new way to work in the finances.

Where the most noticeable change is in the USA and China, that is expected to increase the technology advice, and also in UK, where are arguing about this issue.

• What sort of public ir private institutions are involved?

Wealth Wizards, it is a company that through the best software engineering is dedicated to creating a financial advisory platform, based in United Kingdom.  
And also, some entities are using this tool, for example, John Perks, managing director of life and pensions at UK insurer LV, which launched its Retirement Wizard robo-advice service two years ago.

• Why is it important for Banking and Finance?

We choose this news because it talks about interesting points as:

On one hand, a large proportion of the population haven’t  enough financial literacy so they need financial advice from experts. What it is discussed here is if it is better being advised by robots or by humans.

On the other hand, it has to be mentioned that with this new method banks are saving in personnel costs, because they do not need to hire so many employees to advise clients.

• What do you think will be the consequences in the foreseeable future?

We think that advices will not be on the part of humans, because, in the future, robots will control our savings in a cheaper, efficient, safe and reasonable way. Finally, this change from person to robot, will give banks greater benefits for banks by saving personnel.

Key words: Algorithms, Asset allocation plan, Portfolios, Investment, Risk, Robo-adviser, Automated financial.

The International

• Title: The International  
• Duration: 118 min
• Country: USA
• Director: Tom Tykwer
• Scrip: Eric Warren Singer
• Year: 2009
• Trailer: https://www.youtube.com/watch?v=lglMx3_kKcc
• Synopsis: Interpol agent Louis Salinger (Clive Owen) and Manhattan District Attorney Eleanor Whitman (Naomi Watts) are planning to bring to justice one of the world's largest banks. Uncovering a myriad of illegal activities, Salinger and Whitman follow the trail of financial operations from Berlin to Milan, from New York to Istanbul, in a high-risk international persecution that puts their lives at risk

‘Banking and Finance’ in the film

In this subject we have studied the bank functions, and the main is the financial intermediation. In this film we can see this function, where they keep the eye on the deposits  fall down and also in how to control debs as a way to control the rest of things.

In the middle of the worldwide financial crisis, this film makes a criticism about the corruption on the bank sector.

«¿Why they support battles and bet money on them?», ask an African council to the bank general manager, who offers money and weapons to give a coup.

«We are not interested in battles, but yes on debts that are generating this battles, because who controls debs, controls everything», banker answer.

Personal commentary

It is a very interesting political - financial film, because it shows the other side of the story, the side that the majority of people doesn´t know. The influences of the financial sector and also of the government shown on this film look like an imaginary scenery, but it is real. It doesn´t matter the critical situation of some countries, or the people issues, what really seems important for them is to control everything, to influence on everybody.