Betting on the funds

Anyone who heard Michael Robinson’s File on 4 programme on 10 July could not help but feel fearful about what the investment banks might be letting us in for with their complex, synthetic ETF’s (Exchange Traded Funds).

To quote from his article on the BBC website:

So how profitable are synthetic ETFs for the investment banks promoting them?

Unfortunately, because of the complexity and opacity of investment banking, that is not a question an outsider can answer.

Now, with the arrest of Kweki Adoboli, one must wonder if the insiders are or were in any better position to give an honest answer to the question.

Links
File on 4: Business as usual

Meet Kweku Adoboli

Experts warn of hidden danger of complex investments

Media knives out for synthetic ETFs

ETFs - you were warned