Bank Investment Goes Global

For a long time, people in the United States were restricted to how broad they could go when it came to bank investments but today, investments of this type have now gone global.  As a result, the potential for incredible returns has increased.  However, the thing to remember is that along with potential returns, you would also face increased risk.  We wanted to provide some general information about bank investments, as well as what it means with them going global.

For a long time, people in the United States were restricted to how broad they could go when it came to bank investments but today, investments of this type have now gone global.  As a result, the potential for incredible returns has increased.  However, the thing to remember is that along with potential returns, you would also face increased risk.  We wanted to provide some general information about bank investments, as well as what it means with them going global.

Remember, in addition to bank investments going global opening more doors for investors, it also allows banks to be more competitive.  Although the economy is beginning to bounce back from the recent world financial crisis, it will be years before things actually settle down enough to matter.  Sadly, along with millions of people losing jobs and homes, financial institutions have also folded all over the country.  However, with investments now hitting global markets, it means that financial institutions that might otherwise be at risk for failure also have new opportunities.

In addition to banks, credit unions, and other financial institutions within the United States branching out, other countries are also taking investments around the world.  A prime example is FRSGloba, which is connected to Wolters Kluwer Financial Services that is an industry leader specific to rich solutions for risk management and unified global regulatory reporting just announced that the top global investment banking clients could now use RegPro in Australia.  This regulatory reporting product took just four months to finish, making it possible for the global branch in Sydney to submit all reports to the Australian Prudential Regulatory Authority, making compliancy more efficient.

For all the different financial institutions that are taking bank investments global, not only would investment opportunities expand but having the ability to submit compliance reports in rich format and real time is a huge advantage over older systems.  Using the same example above, the RegPro product is designed so along with in-depth analysis being possible, investigation of investments is easier and more convenient.  According to FRSGlobal’s announcement, this expansion to Australia is only the tip of the iceberg.

Another example of how bank investments going global will change the investing footprint is seen with Goldman Sach.  This investment bank has been one of the fortunate institutions able to survive the financial crisis.  Interestingly, by developing workable strategies, this bank has been able to pay off debt quickly, leading to some people being suspicious and even going as far as to accuse the bank of being “too clever for its own good.”

Taking an innovative approach to investments, Goldman Sach has developed several complex securities called Collateralized Debt Obligations.  These secure mortgage packages has put this bank under intense scrutiny, with many people and financial/banking experts stating this was forced on unknowing clients and because of this they should face serious penalties.  While questions are still circulating about how much clients knew, executives of Goldman Sach defend their decision by saying they were merely opening new investment doors on a global platform.

With bank investment opportunities going global, many questions have been raised leading to the understanding that while this move would be beneficial to investors, as well as financial institutions, there needs to be better understanding so controversy is not raised.  However, even with some feathers being ruffled, considering the wide range of benefits that would come from more bank investments going global, top executives in this sector believe it is only a matter of time before this new opportunity will be considered standard.