A blogger I follow on a regular basis, formerly only known as "Irish Banker" has revealed his identity:
Emma Alberici meets a former insider who – speaking for the first time - alleges major criminal activity in some of Europe’s top banks and who says the regulators are asleep at the wheel.
We also hear from a trader-turned-neuro scientist whose research reveals that testosterone is a major motivator of extreme financial plays and levels of the hormone can make a millions dollars difference to annual salaries and bonuses.
ALBERICI: John Coates spent twelve years on Wall Street, running his own derivatives trading desks at Goldman Sacks and at Deutsche Bank. He gave it all up to pursue a PhD at Cambridge. His speciality? Neuro economics.
JOHN COATES: “The other thing I noticed at the time was that women were relatively immune to the behaviour I was seeing in the traders so I was seeing this irrational exuberance. I thought it was chemical. It wasn’t really happening with women so there was sort of an obvious candidate for what that chemical may be and that’s how I began doing research on testosterone”.
ALBERICI: In the first study of its kind in the world, John Coates took salvia samples in a dealing room, matching the change in a trader’s natural steroids with their profit and loss profile. His research took into account the risks they were taking and volatility in the market.
JOHN COATES: “What we found was that when the trader’s testosterone levels were high in the morning, they made a lot more money in the afternoon then they did on days when their testosterone levels were low in the morning. And it was a very powerful effect. This was huge. I mean this was, this effect if you annualised it, would have added up to about a million pounds difference in their pocket at the end of the year”.