All Articles Finance Modern Money ICYMI - April 25

ICYMI – April 25

2 min read

Modern Money

A collection of stories from SmartBrief publications and around the web…

Regulating trust: Trust. It is a buzzword in the wealth management industry. Advisers and Wall Street leaders say the industry is founded on serving clients and maintaining their trust. But in light of Flash Boys, regulators are pondering whether or not they have to ensure brokers can actually be … you know … trusted to make the right choices for their clients. This really should be tied to the fiduciary standard reform effort allegedly underway at the SEC and the Department of Labor. After all, if regulators are going to mandate that advisers steer clients toward products that are best for the client, shouldn’t the trading of those products also be conducted in the manner that is best for the client?

Here is a tip for brokers when they are trying to determine which exchange or private venue to route their orders: Anytime someone is offering to pay you to provide a service for which you should be paying them, something is probably amiss.

What’s going on in the Valley?: If the valuation of some of the M&A deals coming out of Silicon Valley were baseball home run hitters, I’d submit that it is reminiscent of the steroid era of circa 1998-2000. Wait, forget that. The deals coming out of Silicon Valley are reminiscent of Silicon Valley circa 1998-2000. We’ve been here before and something ain’t right. David Einhorn of Greenlight Capital agrees, as he writes in this somewhat entertaining letter to investors. I recall reading this Forbes piece about Snapchat a few months ago, all the while thinking, “I wonder if Evan Spiegel and Bobby Murphy will be smiling 10 years from now when they look back on how they said no to $750 million a piece?”

Break up Berkshire Hathaway? That’s the plan The Economist says Warren Buffett should put in place for what happens following his departure.

Speaking of succession planning…: Andrew Hill of the Financial Times offers up 5 cheeky lessons on succession planning, as taught by “Professor” David Moyes, formerly of Manchester United Football Club.

Heading to Milken: Watch this space all next next week for on-site updates from the Milken Global Conference.