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Finance interview help

Deepak (associate) (24 Points)

22 March 2012

I am CFA aspirant and currently searching for an Equity analyst job. In one of the recent interviews I was asked few questions and one of the questions was

Looking at the 2007-2009 corporate and financial scandals, which created the global financial crisis, do you think we need more stringent regulations that would be helpful in preventing any such thing happening ever in future?

Any help on this question very much appreciated

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7 Replies

Srinivas (accountant) (21 Points)
Replied 22 March 2012

I was asked a similar question like, Looking at the recent scandals don’t you think it’s better that Banks should be just Banks; and not Investment Houses which rob the Banks and Invest with depositors Accounts, what’s your view?

I would like to join some group or finance club where we can have brainstorming interview sessions or any institute which conducts mock interview sessions in Mumbai that would be great.

anand (associate) (24 Points)
Replied 22 March 2012

Greed has killed morals and even the pressure on the investment bankers to show results at any cost leads to adapting shortcuts to make quick money. What is the incentive to be ethical or moral? I don’t think more regulations will help solve the problem either. That’s my view; yeah of course it would be quite interesting to join any program which prepares you thoroughly for answering such open questions.

1 Like

ashwin (accountant) (23 Points)
Replied 22 March 2012

Not only robust regulatory framework has to be built but also enforcement mechanism/team should also be equally good. Otherwise there would be no use. And you are right----because of the tremendous pressure on the Investment Bankers, their focus is on the next quarter rather than the next 10 years, make quick money for this quarter and take your bonus. Guys I am planning to join “Global banking Training” which prepares you for interviews related to finance jobs

manohar (associate) (20 Points)
Replied 22 March 2012

Guys stop blaming wallstreet, corrupt politicians, regulatory framework etc. The problem is within us i.e “GREED” .A society built on strong moral and ethical values is the only remedy. History has proved regulations will not work. Ashwin ,even one of my friend who attended “Global Banking Training” and currently got a job in a boutique firm through them ,mentioned that they conduct a job oriented training program which is quite helpful .

ashwin (accountant) (23 Points)
Replied 22 March 2012

I partially agree with your views Manohar .You see to expect the financial community and the society at large to voluntarily impose a moral discipline and stick to it and become ethical overnight is an unrealistic dream. There has to be an external agency/governing body enacting regulatory measures to check the system.

Manohar even I spoke directly to Global Banking training institute and have collected all the information about the program, the contents of the program is very good and the trainers profile is also very good, he has been an investment banker in the USA .So probably would be joining their April program happening in Mumbai on 12^th April.

Amit Nagpal (Associate Director) (27 Points)
Replied 23 March 2012

I have read all the replies to the above question. I would like to give pure technical answer to it.

I feel proposed change in companies act, new accounting standards i.e international financial reporting standards, GST, revised SEBI guidelines for IPO and new tax code are all signs of stringent regulations.All the revised norms will be applicable in next 6-18 months

IFRS will bring concept of fair value and detailed guidance for financial instruments.

Apart from this circle rates for property are increasing at faster rate, which means reducing GAP of market value and actual deal value.

I feel all these changes would be helpful in preventing financial scandals or any such thing happening ever in future.

Flexibility in norms is required for development but is should restricted to extent to maintain stable growth and development.

1 Like

vishal (analyst) (22 Points)
Replied 23 March 2012

Guys if there was no element of greed, then nobody would invest in stock markets, if there was no stock market, there would be no stocktraders ----and guess, you and I, would have nothing to discuss. Jokes apart guys, I am seriously preparing myself to get into Investment Banks, I recently finished my MBA and want to join any program that would help me prepare for Investmentbanking roles, Ashwin, can you tell me whether Global banking training has presence in Blore or Chennai?