Betting on Your Management
Every Company and Institution around the globe has consultants that are hired to provide “independent” advice and meetings full of “yes” men. How would an Institution obtain truly independent advice (i.e. not constrained by the want/need for the consultant to give you the answer you want to hear)? Enter prediction markets, where independent third party experts make predictions on the future in the form of a bet. But widespread adoption is not imminent since legal issues are present including insider trading and gambling laws.
For more information, please see the American Banker article written by Marc Hochstein at http://www.americanbanker.com and for more information please contact James Dowling, Manager and member of Marcum’s Financial Institutions Services Group.