When the cat gets its financial fix
The financial crisis has had its effects on the cats.
But the cat that is now in charge of the finances of the financial services industry is far more important than ever.
With financial markets on the brink of a global correction, a cat that could handle a global crisis could become a force to be reckoned with.
For decades, the financial industry has relied on its pet financial services business, which caters to financial institutions, investors and consumers.
But as the market has been in a tailspin for years, the industry is in dire need of a big boost, and catwalks are gearing up for the big cat, a.k.a. the financial king of finance, to take the reins.
“It’s a big cat,” said John C. Johnson, president of the American Financial Association, a trade group that represents more than 40 financial firms.
“This cat is not going to let it get away.”
Financial experts say cat-friendly management is a critical ingredient for the industry to rebound, particularly as the economy slows.
“I think we’ll see a lot of big cat management,” said Robert S. Miller, chief executive of the National Association of Realtors.
“They’re going to be the primary driver of growth for the next few years.”
The financial industry is increasingly using the financial cat to manage risk and to provide short-term, low-risk solutions.
“Cats have the ability to provide us with very high-frequency information on a variety of financial instruments and to make the decision as to how to allocate that information,” said Kevin Toth, the president of Financial Advisory Services, which manages more than $50 billion.
But cat-based management has its limits.
“There is a huge amount of uncertainty and uncertainty in this business,” said Charles D. Ochsner, president and chief executive officer of the Financial Services Roundtable, which represents more a dozen of the country’s largest banks and financial institutions.
“The more things change, the more things will change, and the more likely there is to be a major disruption in financial markets.”
As the global financial crisis deepened, the business that caters specifically to the financial sector started to lose some of its cachet.
As Wall Street was hammered by the collapse of Lehman Brothers in 2008, the market’s focus turned to the cat industry.
As markets became more volatile, cat owners began to lose confidence in the ability of the cat to effectively manage their investments.
“We were losing business, and then we were losing our money,” said Mike Schumacher, president emeritus of the investment firm Schwab and co-founder of the Center for Financial Catadom.
“But the cat is still the financial giant.”
In 2011, the U.S. Department of Justice announced that the U-M system of catwalldeskers had been placed under a $10 million federal monitoring program.
The government wants the banks to adopt policies to reduce the number of cat calls and increase the frequency of cat interactions.
But financial cat ownership isn’t necessarily a bad thing.
For one, it helps cat owners keep tabs on their finances and keeps the financial systems in line, according to Peter J. Kohn, chief financial officer at Bankers Trust, which runs the UMC program.
Kromberg is also a member of the UMD Financial Services Council, a group of financial firms, which promotes financial services for financial professionals.
“Financial services are a key part of our economic development,” Kohn said.
“When you look at the economic development in the country, financial services are absolutely critical.
If you look back at the last three decades, financial institutions have grown from a small group of people to a global entity that accounts for 20 percent of the economy.”
Financial services are not the only area where the financial marketplace is changing.
“As we look to the future, the cat business is one of the most critical sectors of our economy,” said Scott Fink, chief operating officer of CME Group.
“That’s the one thing I think the financial world needs to understand.
The cat is a key player in the global economic fabric.”
As a result, many financial services companies are investing heavily in their cat-management capabilities, with more than 50 firms now offering their services.
The companies are spending tens of millions of dollars on research and development, training cat trainers and hiring new managers, according a recent report from the nonprofit Center for Consumer Freedom.
Some financial institutions are also working to integrate cat services into their daily operations, according the National Alliance for Financial Education, which includes more than 30 financial companies.
“Cat-driven” solutions The cat industry’s shift to cat-driven solutions is also helping the financial system stay afloat.
While the financial markets are in a state of crisis, the nation’s largest bank, Bank of America Corp., is spending billions of dollars annually to help financial institutions manage their risks.
The company has invested in cat training programs, which have been instrumental