Two former giants of the investment banking community pointed out that finance professionals are not looking for a genuine solution to the woes accounting changes are throwing up but are looking for a way to profit. "Most people here, accountants, lawyers and bankers, are trying to work out how they can make money out of this problem rather than what the solution is," said Jonathan Laredo, founder of Solent Capital Management and former head of structured finance for Europe and Asia at JPMorgan in London.
Laredo and fellow JPMorgan alumni Charles Pardue, managing partner at the Prytania Group, explained that the best solution to many of the accounting rules is to create a liquid two-way market in structured credit products. But the desire for margin by the banks will likely mean that they will create more exotic structured products instead.
