Compliance... Ug.

What. A. Day. My morning began with an 8:00AM interview for a compliance role in Charlotte, NC.

Let's talk about Compliance for a second, shall we?  First, let me stipulate the following contains views known to the financial community on compliance, and not necessarily reflective of my own opinions.

Compliance, in the world of finance, is the ugly step child of jobs you take because you can't make it trading, selling, analyzing, or doing any other of those high profile jobs that make a firm the big bucks.  It's traditionally been one of those areas a firm has-to-have, but doesn't directly drive the business or earn a profit. On the contrary, it's a black hole of an expense, similar to paying for a flood insurance policy on a home owned in the middle of an Arizona desert. What that means is those roles do not pay well, and sometimes don't offer the challenges appealing to that ambitious, strapping, go-getting finance professional.

The irony, however, is the obvious reality from the Financial Crisis of 2008. The lack of compliance and regulation is the REASON for the disasters and economic fatalities of many institutions. Why aren't we paying these people and recruiting the best and the brightest for these roles?

Think of it this way, say there was a recent epidemic of bank robberies in a large city, costing institutions billions. Citizens of this city experienced giant hits to their entire life savings, checking accounts, and retirement and college funds. Who should the FBI hire to stop the robberies and ultimately, protect the city's economic state? The sparkling agent who has never committed a crime in his life, worked his way up the ladder, and paid his dues for years, or a bank robber with leads, connections, and first hand knowledge of bank robbing strategies? The answer seems fairly intuitive.

Further, what would you pay the former bank robber if they could prevent banks from being robbed in the future, when he/she is faced with the alternative, which is continuing to rob banks, cash in on huge sums of money, and deplete the city's economy, all without consequence? The answer? Somewhere just above the poverty level. Would this robber choose to continue with his craft of crime or choose work for a fraction of his earnings assisting the FBI? This is financial compliance, ladies and gents.

Although recent attention has been turned to the Dodd-Frank Bill, a flood of panic has hit the industry. A 2,000 page document which has retained 90% of it's original wording would be enough to spark havoc in already rough waters.  My thought is that no trader in their right mind would entertain even the cliff notes of such a waste of paper, nor would they even think to take a role which focused on complying with those rules.

What would the FBI or even a bank offer this trader, as an expert on the strategies of robbing banks?  Poverty level, my friends.  Continue robbing those banks.