Last Wednesday was the annual Rocktoberfest event in New York City, featuring live musical performances from several financial services industry professionals. The event was to benefit A Leg to Stand On, a non-profit organization that provides free orthopedic care – including prosthetic limbs and corrective surgery – to children in the developing world.
Yahoo Finance was a media sponsor of Rocktoberfest this year and kicked off the event with a VIP Roundtable that included Sallie Krawcheck, owner of 85 Broads and former president of wealth management at Bank of America Merrill Lynch.
In the wake of all the controversy surrounding JPMorgan (JPM) – the Jamie Dimon-led bank agreed on Friday to pay more than $5 billion to Fannie Mae and Freddie Mac over charges it misled the housing giants over mortgage-backed securities – roundtable emcee and Daily Ticker anchor Aaron Task asked Krawcheck whether the fines were an example of justice delayed or regulatory overreach?
"The truth is, it's a real cost of doing business," Krawcheck says. "We always tend to, as analysts, [say] 'well that's a one-time charge. Right, so put that aside.' That's not a one-time charge. That's a tax against the high earnings of some years ago. That is a real cost of doing business overall."
Krawcheck pointed out during the roundtable that she, of course, hasn't been a research analyst for awhile but sometime just can't resist diving into an earnings statement.
Watch the video above to see what Krawcheck thinks is currently going on with banks like JPMorgan and how Wall Street currently judges their return-on-equity (ROE).
Over the past year Krawcheck took over the global women's network 85 Broads. Here's part of their mission statement:
We think women are awesome. And we know economic engagement of the women leads to great things. We are a professional women's network that provides in-person events, on-line educational opportunities and access to business leaders and peers. Because networking is the number 1 unwritten rule of success in business, and everyone benefits when women are more successful.
To find out more about 85 Broads click here.
- Sallie Krawcheck