Credit Me With More: Rise and Fall of The Investment Banker

In a world where living by the credit card has been the shape of things for as long as I can remember, it is hard to grasp the fact that overnight funding markets have seized up sending shockwaves beyond the financial markets and into every household this side of the Big Waters. While the AIG crisis has been averted for now Morgan Stanley is not having a pleasant day in spite of great earnings in its last quarter. All eyes are on Morgan and Goldman Sachs, the two big I-banks left standing. Will they go next? Panic! Panic! Panic!

Investment Banking has always been the career with ‘cache.’ When I graduated from Williams College in 1993, most of my classmates had secured jobs with various Wall Street firms well before graduation day. Those of us who opted for other professions were considered ‘lower’ on the scale of common sense (don’t even think about people’s reactions when I tell them about my career path from Williams to advertising to Ayurvedic Medicine!).

Investment Bankers are the entrepreneurs of Wall Street: sure they take the risk but then look at the return that they bring and in a capitalistic society, who doesn’t respect the work of an entrepreneur? In the glory days of Wall Street, investment bankers were regarded to kings with ‘chocolate and champagne’ lifestyles…but not at the cost of the rest of society.  For as we all know, building solid business does wonders to boost the economy.

So where did the problem arise? How did we lead ourselves to this state of panic? Investment banks have financed themselves for the good times rather than bad. So they depend excessively on short-term funding and high leverage. While this might have generated high returns in good times (supporting large payouts for employees and shareholders), in bad times this kind of capital structure has come back to haunt the firms. Given Lehman’s collapse, the only choice for the remaining investment banks might just be acquisition by commercial banks with large, stable deposit bases. 2008 has seen it happen with Bear Sterns-J.P.Morgan, Merrill Lynch-Bank of America and now with Lehman Brothers-Barclays. All three deals create universal banks that are better positioned to weather market turmoil. Will this be the way for Morgan and Goldman? Or will they change their strategies to actually weather the storm of the credit crunch?

Much as ‘I-Banking’ might be a bad word right now, I will personally be sorry to see the collapse of an industry that has supported my household for all of my adult life. The Investment Banker has a unique personality and skill set that gives him/her a peculiarly stron apetite for risk and reward: a good friend left Lehman NY, just a month ago to build the next phase of her career in Asia. It is an awfully exciting time, I remember her saying as she fervently packed her life into a forty foot container headed to Hong Kong. There are deals happening in Asia almost round the clock. It’s like the very nascent phase of Wall Street! Alas, she went from Wall Street to the pavements of Hong Kong. Had she hung on a few weeks, she would have been saved by the clutches of Barclays!

This entry was posted in Daily Wisdom and tagged , , , , , , , , , , , , , . Bookmark the permalink.

5 Responses to Credit Me With More: Rise and Fall of The Investment Banker

  1. Pingback: What Will the Financial Crisis Mean for Corporate Social Responsibility? | Reenita's Wisdom

  2. Pingback: Financial Crisis: What Will The Collapse of Investment Banking Mean For CSR? : Ecopreneurist

  3. Pingback: Financial Crisis: What Will The Collapse of Investment Banking Mean For CSR? | Eco Buying

  4. You will observe the reason As i guide from co-signing just for fiscal loans. It’s just a devastation holding out to happen. And the [url=]pożyczka bez bik[/url] payday cash advance guidance corporations would possibly not give what people provide.
    A quick payday loan can be a short-term mortgage with the help of increased fees a growing number of all those guarantee because they believe it is a great choice [url=]pożyczka bez bik[/url] with an urgent trouble. That lending product may hide or postpone manufactured from reckoning, but it’s often the worst feasible formula. Almost all borrowing products tend to be explained over often times because the consumer hasn’t got good enough capital to shell out this monthly bills. Sanctioned aggresive, overpriced never-ending cycle that is definitely really hard to fix plus brings about incredible personal problems for several households.

    Your lender is certainly suitable, anyway. The loan product guidance organization will endeavor to settle ones cash advances at under your debts. And yet before it truly is productive (and therefore the tremendous largest percentage are certainly not) you can expect to carry on deal with the very ambitious range results in the financial institution. Together with sending a cease-and-desist notification cannot give up variety results. Your Good Debt collection Practices React forbids [url=]pożyczki bez bik[/url] loan providers as a result of making contact with anyone if you ever mail some sort of page wondering it. They also continue to could possibly file a claim one through judge.
    Listed below is great help: When i you shouldn’t generally urge accepting that will eliminate personal debt, but a fabulous debt consolidation mortgage may be a great idea on your behalf. The software will allow you to pay for the money you owe [url=]więcej informacji[/url] the whole amount. To return the favour, it would be easiest important to ship premiums to the fresh loan provider. Individuals expenses would hopefully always be for a decrease associated with interest having lesser number of charges.

    Just before taking up some amalgamation home loan, be certain to discover the interest charge, charges designed for forgotten payments. You’ll find that you must establish you might have more than enough money in making the funds. On the other hand, rather than giving you that will proof one self, It is best to ask your current pal to be able to increase not to mention consider accountability for the debts. He / she ought to have addressed [url=]pożyczki bez bik[/url] the following from the beginning. At long last, It’s safe to truly feel improved any time you went on a good coalescence payday loan from your core mortgage company maybe a mortgage lender or possibly credit history partnership.
    In case your customers will be very seriously taking into account an advance payday loan, I propose they will at a minimum take on pożyczka bez bik your safety measure with with a mortgage lender that may be a person in typically the, as their members become a member of many field guidelines.

  5. What’s Happening i am new to this, I stumbled
    upon this I have found It positively helpful and it has aided me
    out loads. I hope to give a contribution & assist different users like its aided me.
    Good job.

    Here is my webpage her explanation

Leave a Reply

Your email address will not be published. Required fields are marked *

Copyright©Reenita's Wisdom 2012. Allrights Reserved.