How to get into the Chicago finance game
As we near the end of the year, we’re finally seeing a real uptick in interest from people who are ready to jump into the city’s rapidly expanding finance market.
For those who have the patience and a few dollars to splash, we’ve put together a guide to get you started.
For the uninitiated, here are some key points about the Chicago Finance Industry: A quick recap of Chicago’s finance landscape: 1.
Chicago has a $6.3 trillion municipal bond market: According to the Illinois Municipal Market Authority (IMMA), the state’s largest financial service provider, the Chicago Public Assets Bond Market (CPAMB) has been growing at a double-digit rate for the past four years.
The agency’s chief financial officer, Michael J. Hirsch, told Business Insider that CPAMB has grown at a rate of 25 percent a year, which is nearly double the average of the past decade.
There are more than a dozen different financial services companies operating in Chicago, with about 20 in the Loop alone: CPAMA has an “advanced” listing for a number of the citys largest companies, including: UBS, TD Ameritrade, Bank of America, Wells Fargo, Citigroup, Credit Suisse, JPMorgan Chase, Bankrate, and more.
Chicago’s city council has the power to approve or veto any of Chicagos new corporate and personal finance deals: CPAMP has been the city council’s primary financial regulator since 2007, and Hirsch said in a recent interview with Chicago Business Journal that the council has “made it clear that we have a lot of power.”
He added, “We will not allow any city in the country that’s not in compliance with CPAMP rules to approve anything.”
Chicagoans have a right to know about the financial products they’re purchasing in Chicago: Chicagoans, who own at least a 10 percent stake in their local bank or credit union, have a constitutional right to learn about the products and services they’re buying and selling, according to Hirsch.
Chicagoers are also entitled to know whether or not the companies in their financial services portfolio are based in the city or out of the state, which allows them to know the financial services quality of companies that are located in Chicago.
CPAMP regulates about 50% of the City of Chicago.
According to Hensch, CPAMP does not have the authority to regulate companies located out of state, such as the company that runs Wells Fargo & Bank of American in Chicago’s Loop neighborhood.
Instead, CPAM will regulate companies that reside in Chicago and in Illinois.
CPAM has the authority over a $5.5 trillion Chicago corporate bond market, which includes the city, the state and the Federal Reserve Bank of Chicago: CPAMP has the right to “regulate, suspend, or cancel any securities or other obligations issued by any of the parties, or any of their agents, brokers, dealers, and customers, including any obligation of the issuer or any third party, or of any person or entity to pay or to assume any obligation or liability, including the obligation of any of such parties to pay any interest or principal of any amount on any debt or security, and the right of any such parties, brokers or dealers to enforce or hold the liability of any other party, including to hold the parties liable in the event of default by the issuer of any securities, notes, or obligations issued pursuant to the terms of any agreement or transaction entered into between the issuer and the third party or between the issuers and third parties.”
CPAMS annual reports show that the company is required to disclose all financial information and fees that it collects from the Chicago city: CPAMS has a financial disclosure plan that contains information about its fees and expenses and what financial products it offers, as well as how much the company collects from each of its customers, its customers’ financial statements and other information, the company’s financial reports, and how much its customers pay each month for its services.
CPamps financial disclosures are public records, which means they are available to the public.
The Chicago Council is the city that has the final say on CPAMb contracts and policies: While CPAMPs role as financial regulator is limited, the city is still an important player in the market, as Chicago is home to more than 80% of CPAMBs financial products.
CPamp also has the ability to determine if CPAMbs financial products are in compliance for certain types of businesses.
Chicago is the third largest city in Illinois and has the largest economy in the nation.