The Podcast of the Lotus Eaters PREVIEW: Brokenomics | Finance Has Changed with Steven Woolfe
Jul 8, 2025
In this discussion, Steven Woolfe, a former business prevention officer with firsthand experience during major financial crises, shares insights from his remarkable career in the City. He delves into the crucial role of compliance officers and the high-pressure dynamics of trading floors. Woolfe highlights the evolution in regulatory frameworks, the challenges posed by options trading mis-selling, and the shifting landscape that could diminish London’s status as a financial hub. His reflections provide a captivating glimpse into the intricate relationship between finance and regulation.
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Early City Compliance Experience
- Steven Woolfe started as a compliance officer and general counsel at a small stockbroking firm outside the city.
- The firm operated like a classic "wolf of Wall Street" setup with heavy trading and high commissions on long-dated equity options called LEAPS.
LEAPS Mis-selling Dynamics
- LEAPS were legitimate option products with risk and potential profit based on stock prices.
- The issue was excessive commission and time-sensitive pressure led to mis-selling and quick sales.
Shift in Regulatory Tone
- Regulation shifted from light-touch, industry-understood rules to harsh enforcement assuming corruption.
- This change pushed compliance roles to become more severe and regulatory agencies more punitive.