Successful launch by Munich Financial Center Initiative of “fpmi inside – Munich’s Financial Forum”
02. Dec 2009, Munich Financial Centre Initiative
The first “fpmi inside – Munich’s Financial Forum” was staged on November 19th. This series of events is being staged to enable high-potentials working for fpmi member companies to get to know each other. The first get-together was attended by 120 of these high-flyers. After listening to a speech given by Klaus Greger, member of director in charge of an operating division of HypoVereinsbank, they discussed Greger’s key points and other topics of financial industry. One of its objectives is fostering the networking of the players comprising Munich’s financial community. To achieve this goal, fpmi has launched “fpmi inside – Munich’s Financial Forum”. To be held three to four times a year, these events will provide a forum in which young executives and professionals staffing fpmi member companies and institutes will get acquainted with each other and – through open and frank discussions – each other’s views.
The message emerging from the first “fpmi inside”, which was held on November 19, 2009” – this series is going to be a success.
Held on the premises of the Munich Stock Exchange, which are located in the city’s Karolinenplatz square, the first event was attended by some 120 participants. These, in turn, were handpicked by the executive board members and managing directors of fpmi member companies. The get-together was kicked off by words of welcome given by Christine Bortenlänger, fpmi’s speaker and member of the Munich Stock Exchange’s management. Next up was Klaus Greger, who is the director in charge of HypoVereinsbank’s division for corporate clients in Germany.
His inaugural talk was entitled “Economic prospects for 2010 – joining together to overcome the crisis”. It started by providing a summary of the unfolding of the crisis gripping the world’s financial and other markets. It then reviewed the divergent trends now shaping the markets. Greger warned participants against viewing the recovery of financial markets as being completed. He sees this viewpoint as being premature and overly optimistic. The IMF did recently reduce its estimate of total losses and writedowns. These still, however, amount to €3.4 trillion. Of that, only €1.6 trillion has been written down. “We still have a long row to hoe,” stated Greger, who went on to point out that the strong results turned in by a number of banks stemmed from extraordinary and highly positives circumstances. These include the markets’ volatility, the large number of new issues of treasury and corporate bonds, and the plentiful and cheap liquidity.
The profits being reaped by the banks have given rise to the widespread and publicly voiced criticism that the banking industry hasn’t learned the lessons of the crisis. Greger sharply rejected such criticism. The industry has, in fact, recognized that markets are not always capable of properly regulating themselves. This insight, in turn, forms the basis for the institution of changes. One result of this insight has been the achieving of the consensus that the world’s financial markets have to observe a single set of rules. In Greger’s opinion, the measures recently undertaken will enable the attaining of this goal.
Greger went on to make the point that these measures have both unleashed a process of rethinking in the financial world and have expedited underlying trends. Greger cited two of the latter as being of key importance to the development of the economy in the years to come:
The first is the new role of the government in the economy. The measures instituted by the world’s governments have imparted a greater prestige and a large role to them in the managing of their economies. This role has been widely accepted by the business community. Greger did, however, come out against the governments’ being accorded too great a say. “We’ve got to create markets which are both free to operate and subject to the (beneficial) interventions by governmental bodies,“ summarized Greger.
Greger entitled the second trend “the comeback of equity”. The increasing of the requirements for banks to maintain equity makes basic sense, maintains Greger. These changes will, however, also have negative ramifications, such as the sustained impairing of banks’ abilities to provide credit. To offset this trend, the market for securitization has to be jumpstarted back into life.
The get-together’s ensuing discussion centered on this point. Raised in the discussed was the question of the relationship between the growing need for equity and a larger number of IPOs by SMEs (small and medium-sized enterprises). Greger foresees such a scenario. He does not, however, view it as materializing within the next twelve months. Gregor responded to a question about the timing of the recovery of the securitization market with a remark on the need for the impetus provided by state participation.
The lecture and discussion were followed by the guests’ exchanging of views and business cards. This networking was set forth in the subsequent reception, which went on for far longer than the scheduled conclusion of 8.30 p.m. Ms. Bortenlänger, the get-together’s hostess, had this to say about the first fpmi-inside: “The large number of participants and the many good discussions carried on this evening show that this series of get-togethers is going to be a must-attend event for the high potentials in Munich’s financial community. This, in turn, will enable fpmi inside to achieve one of the initiative’s goals: getting its people talking and working together.”
The message emerging from the first “fpmi inside”, which was held on November 19, 2009” – this series is going to be a success.
Held on the premises of the Munich Stock Exchange, which are located in the city’s Karolinenplatz square, the first event was attended by some 120 participants. These, in turn, were handpicked by the executive board members and managing directors of fpmi member companies. The get-together was kicked off by words of welcome given by Christine Bortenlänger, fpmi’s speaker and member of the Munich Stock Exchange’s management. Next up was Klaus Greger, who is the director in charge of HypoVereinsbank’s division for corporate clients in Germany.
His inaugural talk was entitled “Economic prospects for 2010 – joining together to overcome the crisis”. It started by providing a summary of the unfolding of the crisis gripping the world’s financial and other markets. It then reviewed the divergent trends now shaping the markets. Greger warned participants against viewing the recovery of financial markets as being completed. He sees this viewpoint as being premature and overly optimistic. The IMF did recently reduce its estimate of total losses and writedowns. These still, however, amount to €3.4 trillion. Of that, only €1.6 trillion has been written down. “We still have a long row to hoe,” stated Greger, who went on to point out that the strong results turned in by a number of banks stemmed from extraordinary and highly positives circumstances. These include the markets’ volatility, the large number of new issues of treasury and corporate bonds, and the plentiful and cheap liquidity.
The profits being reaped by the banks have given rise to the widespread and publicly voiced criticism that the banking industry hasn’t learned the lessons of the crisis. Greger sharply rejected such criticism. The industry has, in fact, recognized that markets are not always capable of properly regulating themselves. This insight, in turn, forms the basis for the institution of changes. One result of this insight has been the achieving of the consensus that the world’s financial markets have to observe a single set of rules. In Greger’s opinion, the measures recently undertaken will enable the attaining of this goal.
Greger went on to make the point that these measures have both unleashed a process of rethinking in the financial world and have expedited underlying trends. Greger cited two of the latter as being of key importance to the development of the economy in the years to come:
The first is the new role of the government in the economy. The measures instituted by the world’s governments have imparted a greater prestige and a large role to them in the managing of their economies. This role has been widely accepted by the business community. Greger did, however, come out against the governments’ being accorded too great a say. “We’ve got to create markets which are both free to operate and subject to the (beneficial) interventions by governmental bodies,“ summarized Greger.
Greger entitled the second trend “the comeback of equity”. The increasing of the requirements for banks to maintain equity makes basic sense, maintains Greger. These changes will, however, also have negative ramifications, such as the sustained impairing of banks’ abilities to provide credit. To offset this trend, the market for securitization has to be jumpstarted back into life.
The get-together’s ensuing discussion centered on this point. Raised in the discussed was the question of the relationship between the growing need for equity and a larger number of IPOs by SMEs (small and medium-sized enterprises). Greger foresees such a scenario. He does not, however, view it as materializing within the next twelve months. Gregor responded to a question about the timing of the recovery of the securitization market with a remark on the need for the impetus provided by state participation.
The lecture and discussion were followed by the guests’ exchanging of views and business cards. This networking was set forth in the subsequent reception, which went on for far longer than the scheduled conclusion of 8.30 p.m. Ms. Bortenlänger, the get-together’s hostess, had this to say about the first fpmi-inside: “The large number of participants and the many good discussions carried on this evening show that this series of get-togethers is going to be a must-attend event for the high potentials in Munich’s financial community. This, in turn, will enable fpmi inside to achieve one of the initiative’s goals: getting its people talking and working together.”