Cowdery: Fund managers must spearhead industry reform

He says the financial services sector needs to be restructured through better collective action by asset managers. "Over the last decade the financial services has become uninvestable by capital markets," he says. "It has become impossible for fund managers to coolly and rationally allocate their risk budget to the stocks, securities and bonds of financial institutions. "The reason they cannot do that is you need to understand the likely predictable financial behavior of the stocks and bonds you are buying, and what we have seen over the last decade is we cannot make that kind of p...