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Matt Levine

Selling Software That Sells Funds

Also justness, CEO control, Slow Indexing and further adjusted Ebitda.

Are banks tech companies?

The last time we talked about BlackRock Inc.’s Aladdin risk-management system—which I somehow did not know stands for “Asset, Liability, Debt and Derivative Investment Network”; good acronyming!—\was when Morgan Stanley was bragging about its use of Aladdin to advise brokerage clients on their risk. I wrote then that many of the traditional roles of banks in financial markets—to provide capital, to take market risk, to coordinate information, to advise on what securities to buy—have become less important, as regulations change and as technology becomes more powerful. Instead the technology itself is more important, and the banks—and other big financial firms like BlackRock—are increasingly software providers, giving clients the benefit of their wisdom and information not in the form of personal advice and stock-picking, but in the form of software.