atans1

Posts Tagged ‘Investment banking’

Investment banking horror stories

In Financial competency on 05/03/2013 at 4:42 am

In the end, an adviser would say the client, no matter how foolish, is in charge. And that was the problem. The Bakers, who had built a $600 million business from scratch, appear to think that their advisers should have saved them from themselves and that they could negotiate a better deal than Goldman Sachs. That was a mistake.

http://dealbook.nytimes.com/2013/01/29/lessons-for-entrepreneurs-in-rubble-of-a-collapsed-deal/

The charges against … should put Wall Street on notice that the government will try to police markets that require trust among the participants in the absence of transparent price information. The defense of caveat emptor, or let the buyer beware, will not necessarily protect against criminal charges for fraud.

http://dealbook.nytimes.com/2013/01/30/a-warning-to-wall-street-about-misleading-clients/

Update

So why not, for example, put a ceiling on salaries and let clients reward good service, just as they do in restaurants? That could allow banker pay to shrink to a more realistic level.

The U.S. restaurant business even provides a model of sorts. The Fair Labor Standards Act lets an employer pay waiters below minimum wage as long as they earn a certain amount a month in tips. If the combined total remains below the minimum wage, the restaurant has to make up the difference.

http://dealbook.nytimes.com/2013/03/01/tip-bankers-like-waiters/?nl=business&emc=edit_dlbkpm_20130301

Serious money

In Banks on 17/07/2012 at 9:52 am

Will never hear of this in our MSM, only why the Swiss bankers are rushing to Asia (and S’pore).

Geneva, which became a refuge in the 1960s for Egyptian cotton merchants fleeing President Gamal Abdel Nasser, developed as a Middle East banking center after King Fahd constructed a palace in the lakeside suburb of Collonge-Bellerive, where he held councils on summer evenings

http://www.bloomberg.com/news/2012-07-10/geneva-bankers-tap-old-ties-to-find-new-riches-amid-arab-spring.html

Middle East has an estimated US$4.5 trillion of private wealth.

Too bad abt the investment banks though  http://dealbook.nytimes.com/2012/05/24/in-the-persian-gulf-struggling-to-adapt-as-deals-dry-up/?src=dlbksb

Base Metal into Gold: no not Alchemy. It’s all in the Accounting

In Accounting, Corporate governance, Investment banking on 13/12/2009 at 9:58 am

Here’s an explanation of how accounting turned an investment banking loss of £160m into a profit of £3.65bn. And so made “hundreds, and possibly even thousands, of staff at the state supported Royal Bank of Scotland group (RBS)” eligible “for bonuses totalling about £1.5bn”.

Wow!

The moral of the story: be sceptical, very sceptical of the headline financial numbers. And read the footnotes cynically.

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