Capital Markets Governance 101

Front, middle, back? Are we in some sort of public transportation? Since Lehman’s failure more than 10 years have lapsed, during which all compartments of capital markets operations have been reshaped by regulators. But what compartments are we talking about anyway? For non-professionals, capital markets parlance may sound peculiar, and its structure even more. Why is there a distinction between different departments to begin with? Where is such operational complexity coming from, in an industry that has been trying to reduce cost for the better part of the 21st century? The short answer to those questions is that banks (investment…...