Exchange-traded funds are developing in a similar way to the shadow banking system that almost brought down the world’s financial system in 2008, according to Terry Smith , chief executive officer of Tullett Prebon Plc .
Beneath a crystal chandelier at London’s Mandarin Oriental hotel, across the street from Harrods department store, more than 100 bankers, hedge fund managers and wealthy retirees are gathered on a cold March night to plot their escape from Britain. Swiss government officials and Geneva-based financial advisers have come to London to lure rich residents with glowing descriptions of the country’s low taxes, safe streets, private-banking options and convenient ski weekends.
London’s financiers paid tribute to former Prime Minister Margaret Thatcher, who died yesterday, as the woman who helped guide the city’s transformation from a provincial trading hub to the world’s top financial center.
Edith O’Brien, the MF Global Holdings Ltd. assistant treasurer who has become a key figure in tracing the disappearance of as much as $1.6 billion in customer funds, declined to answer questions from House lawmakers.