'Is the Financial Crisis caused by inefficient financial data management or financial models or both? Essay\r'

'This question is comprise at the conclusion of â€Å"As Securities Become to a greater extent abstruse Is financial information Management decent More Complex?” by Jeffrey Rooney. This paper discusses unlisted differential coefficients as an example of how the fiscal crisis escalated and Enterprise Data Management (EDM) as a financial data model that offers a solution to data problems approach by the industry.\r\nBased on Rooney’s first appearance the financial crisis is a symptom of ineffectual financial data centering which is the precede of intentional spend of poor financial models coupled with the intentional corrupt of financial models.\r\nPoor financial data management has a cultural and technological basis. The cultural cistron is the Chinese wall or siloed transmission line social unit structure which facilitates and operates on the intentional misuse of financial models for the purpose of preserving the identity and autonomy of indepen dent business units. The technological component includes other issues such as merger activities and â€Å"disparate legacy systems” (Rooney 2009, p.2) which results in either use of poor financial models or provides no framework for effective financial models at all.\r\nThe IBM-World jargon currency swap was structured with the purpose of avoiding highly regulated capital markets and regulation by touched countries. This was a $290 million transaction which paved the counseling for the creation of the now $700 trillion OTC derivative market. (Rooney 2009, p.3) As a result of these inefficiencies a financial crisis has occurred in multiple sectors of the financial markets.\r\nThe financial crisis is the result of the systematic use of poof financial models and inefficient data management strategies built around the capital goal of expanding the derivative market. Avoiding regulation and hiding the complexity of derivative transactions is a primary goal of, result ing in, the inefficient financial data management and financial models.\r\nBibliography\r\nRooney, J. (Spring 2009) As Securities Become More Complex Is Financial Data Management Becoming More Complex? FinTech Project. Polytechnic Institute of NYU Finance and Risk Engineering.\r\n'