User241885/(FAMCO)

An individual who has advised families the last thirty years, FAMCO started as a lawyer representing regional commercial bank and trust companies back when they still existed, then investment partnerships back when they were still profitable, and more recently with large multi-national money center banks back before TARP.

FAMCO's prominent theme is that the current financial intermediaries, (commercial banks, insurance companies and investment banks) have concerned themselves so much with the pursuit of scale, that they offer advice which does not benefit or suit their clients. In the case of all three financial intermediary entities, we have seen the disasterous outcomes in no uncertain terms caused by the ...More gradual disconnect between the mega firm and its family clients.

The commercial banks switch to fee-based models the last 15 years has brought forth a new generation of bankers who are completely unskilled in credit analysis and risk management, as we have seen quite clearly the last three years. The number of investment firms that now depend mostly upon trading profits from their large instituitional clients is unequivovally pitting the needs of those large insitutional clients against the family office and individual client.

Finally, insurance underwriters have become fixated on the origination fees of their products, rather than the viability of the products themselves. That fact that a derivative is only as good as its counterparty's credit worthiness should never have been an issue, but in fact became the dominant theme of the 2008- 2009 meltdown.

Today's family cannot not rely upon the advise of the large financial intermediaries. The conflicts have expanded, the quality of the judgment has diminished and there are simply not enough common goals and mutual interests betweeen the corporate culture and its individual clients for the objectivite counsel to fulfill the fiduciary obligations required from a trusted advisor.