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That wasn't banking, it was sales and trading.

While Birnbaum and the other individuals involved in Abacus acted especially douchey in front of Congress, the point that was apparently lost on many people was that when a market maker sells something off their prop books, they are inherently short that thing




Plus, when they make a big deal, the trading desk will naturally hedge themselves (that's their job!), so they'll "take the opposite position of what they recommended their client". Sounds bad, but is normal and appropriate business practice.


It's funny that you write are if they're separate companies.


They contribute to the same company's P&L but functionally speaking they're separate, as specifically dictated by numerous securities laws




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