Insanity

Over the past week, my boss convinced me that enlightenment engenders humility and from ignorance spawns arrogance. He didn't mean to do that, its just something I realized.

Having worked with some of the leading financial institutions of the country, I am well-versed in the Treasury front, middle and back office functions. That would explain why I am heading the middle market desk. My boss on the other hand, having worked in consumer finance and recovery for most part of his career, barely knows anything about currency dealing, settlements and various risks inherent in the trading and banking book.

The harangue started as I was presenting a VaR model which was derived by a delta normal approach. Since the value at risk was being calculated for each currency separately, I suggested the amounts of risks from each currency be added together. My boss on the other hand argued (I am calling this an argument because one of my teachers told my class that argument is nothing more than an exchange of ignorance) that SINCE A LONG POSITION IN USD IS BEING USED TO HEDGE A SHORT POSITION IN THE JPY, the risk amount derived from both the currencies should be off set against each other. Unfortunately, the fun did not stop there. He went a little further in ridiculing and calling names and asking my other colleagues to explain to me why I was wrong. I just wished he had expressed his views in the ALCO meeting.

Needless to say, I don't think I will be sticking around here for long.