If you weren't able to join us on our 2010 predictions webcast today, I wanted to at least share one of the predictions, specifically for Capital Markets, that I spoke to. I talked about capital markets reform being more bark than bite.

The annual survey of technology companies driving solutions into the global financial services industry has been completed and has yielded a silver lining to what otherwise could be classified as an unprecedented year of stress and capital rationing.

Please watch or download for those of you who do not have access to YouTube the following perspective on sustainability services for financial services firms.

For most companies the 2010 budget cycle is in full swing and given the events within the financial services industry over the past year, it will not be a quick, easy or pretty process this year.  The global financial services crisis and ensuing recession have brought risk management technologies and processes front and center to an organization's survival.  Being able to identify key risks, understand their impacts and tangibly make moves to control and monitor them are a requirement, not an analytical goal in this environment.

It's hard not to see all the news and concern surrounding high frequency trading (HFT) lately. We recently talked about this in a research link: High Frequency Trading: Friend or Foe? (Sorry this is for subscribers only). This is a snippet from the link:

Regarding HFT technology, the reality is, it has been around for a number of years and is not "the latest fashion" for Wall Street firms. Maybe the trend of ultra-quick order and cancellation algos to flinch buyers is new, but speed has always been an important element to the well functioning markets. Hedge funds and investment banks alike have been investing in low latency infrastructures for over ten years. The arms race as described by many has also been under way for years. The better question for firms investing in HFT technology to ask themselves is at what point is it worthwhile to spend more capital to chase smaller profits?

At a recent board meeting, Bank of America CEO Kenneth Lewis told investors that they are planning on reducing their branch network by 10%. The reason, according to Bank of America, more people are using online and mobile and therefore not utilizing the branches.

A few interesting aspects from the major US banks announcing their second quarter earnings this week.  First, everyone is waiting for the other shoe to drop with both consumer and corporate credit and all the banks were increasing loan loss reserves to cover credit card, mortgage and business loan losses.  Second, it is becoming clearer that we are rapidly approaching a world of banking have and have nots.  The NY Times today paints that picture clearly as it talks about the strength of Goldman Sachs and JPMorganChase. Both were opportunistic (with the governments help) and are now reaping the benefits even as they are conscious of the credit issues that still loom on the horizon.