investment bankers

The return of investment banking

Jim Kim — Mon, 20 Oct 2008 20:28:06 -0400

If there was one species on Wall Street that seemed to lose cachet as "the boom" crested, it was the traditional investment banker. The private equity bankers and hedge fundies were starting to look down on them a bit, sneering about their grind. But tradition may reign again--and possibly soon. Strategic deal makers will outlast the subprime bankers and CDS traders. TheDeal.com opines that the practice "does not require vast droughts of capital, although the ability to provide financing adds an edge. It offers its services as an adviser, not as a principal. It harkens back to partnerships, relationships and the ancient calling of the intermediary." Volume may be depressed for a while. But the fundamental need for their services will always be there.

For more:
- here's the article

JPMorgan Chase slashes investment banking execs

Tue, 27 May 2008 06:59:58 -0400

CNBC reports that JPMorgan Chase has axed a lot of investment bankers, reflecting the realities of the market. About 200 executives were cut. The move apparently is unrelated to Bear Stearns integration. Many of those cut were junior bankers, an executive told the news service. The mergers and acquisitions team supposedly took the biggest cuts--"as many as half the people... were told they no longer have jobs." One could argue that this marks one of the most severe head-loppings in quite a while, but that's hard to gauge. If stealth cuts could somehow be figured in, these cuts may look comparable. Most think there are more to come.

For more:
- here's the CNBC article

SPACs coming up short?

Mon, 12 May 2008 06:59:56 -0400

Is it a bad sign when an investment company has a former football coach get in front investment bankers and hedge fund managers for a little rah-rah? One could view it as a sign of trouble that some SPACs may be sensing the need for some investor hand-holding. Financial Week notes they are not faring well. Over the past three years, nearly 150 SPACs went public, raising $20 billion. But 17 of the 23 that went public in 2005 (and actually made acquisitions) saw their share prices decline. We've noted before that many are having trouble finding good acquisitions. We may be in for a spate of SPACs giving up and returning funds to investors, who are getting restless, to say the least.

For more:
- here's the Financial Week article

ALSO NOTED: Shorts getting squeezed on Lehman Brothers stock; Morgan Stanley sells Outsourced Trading; and much more...

Fri, 11 Apr 2008 06:59:50 -0400

Company News:
> Morgan Stanley sells Outsourced Trading. Article
> Wells Fargo boosts credit line for SunPower. Article
> Shorts getting squeezed by Lehman Brothers. Article
> Bank of America to consolidate its health plans. Article
> Criticism of Citigroup's leveraged loan deal. Article
> Does Apollo's IPO make sense? Video

Industry News:
> Party over for investment bankers. Article
> More on term auction failures. Article

Regulatory News:
> Hedge fund group vows to fight regulation. Article

And Finally... The benefits of a powerful mentor. Article

Merrill Lynch bulks up in Brazil

Fri, 04 Apr 2008 07:59:54 -0400

Emerging markets have been bright spots for a lot of banks lately, one reason why Merrill Lynch is making a move into the field. The company's recent recruitment of nine investment bankers in Brazil is a good indicator of its ambitions in the region, notes Investment Dealers' Digest. Brazil may end up the key in its entire Latin American strategy, which includes presences in Panama, Chile, Argentina and Uruguay. It's already got plenty of competition in Brazil, with UBS and Credit Suisse leading the deal pack in 2008. Last year, Citigroup took to those honors. The big issue is whether Merrill made its move a bit too late. Most think business in the country will moderate.

For more:
- here's the Investment Dealers' Digest article

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Emerging market private equity booming? Article
Private equity firms eye emerging markets? Article
Fund managers and emerging markets. SPOTLIGHT