"Bad times for investment bankers are here to stay"

Sorry had to post this, but would like to hear some criticism of the article..

From the ever-reliable Forbes:
The profession’s recent indignities aren’t just a post-recession hangover.

Investment bankers used to rule the world. Now J.P. Morgan chief Jamie Dimon has to explain to investors why the bank is even in that business anymore. (It’s still a service that clients need, he said during a call in January.)

How times have changed. Over the past year the indignities mounted for banks’ onetime profit centers. The leading person to succeed Dimon at J.P. Morgan, Gordon Smith, runs consumer banking. Swiss giant Credit Suisse’s new CEO comes from insurance. Many large European banks are getting out of investment banking completely. And the ultimate insult: Wells Fargo and U.S. Bank, once derided for sticking to straight lending, are now more profitable than lords of finance Goldman Sachs and Morgan Stanley.

The irony is that these should be good times for Wall Street. Mergers and IPOs are back. Stock indexes are at all-time highs. Activist investors are launching hostile takeovers. And yet the Street’s profit machine seems broken. The average bank has a return on equity of 8% these days, down from 18% before the financial crisis, according to RBC Capital Markets. Much of the drop has been in investment banking.

Learn How to Decode Body Language from an FBI Guru

This is the next book review in a series of installments that will be coming from DeconstructingExcellence.com. See my other book summaries on WSO here. If you find my summaries to be useful, sign up at the website here to make sure you don't miss any.

Let me know in the comments below if you have any comments, questions, or suggestions for books you'd like to see summarized.



Does anyone know about DBRS (everything from quality of work, culture, prestige/respect compared to other financial fields)? Glassdoor reviews seem pretty negative, but I always take those with a grain of salt.

At this company, what are the better places to be (analyst in FIG or analyst in Structured ABS)?

Where Are All The Construction Workers?

In the modern world, construction of houses, building and different infrastructures can be seen. However, it seems that the more the number of infrastructure arises, the lesser the people apply to construct it.

The housing bust and Great Recession might have scared a generation of would-be construction workers away from the building trades.

The Best IBD SA OCR, Interviews and FT Offer Conversion Posts on WSO

Thanks to my content intern @"Lucas_m" for another great compilation post. This one covers on campus recruiting, interviews, and converting SA internships into FT offers. Enjoy! -Andy

1. Acing the investment banking analyst interview
posted by @"frgna"

Wrapping up an interview
1. Before you ask us questions it’s nice to say “I’ve done lots of research on your firm and talked to a lot of people so I know your firm pretty well, so I really want to hear more about your own personal experiences here.”

2. Some good questions to ask your interviewers: 1) Tell me about a recent deal you’ve worked on that you liked. 2) What are the next steps from here? 3) How have you liked your experience here so far? Anything surprise you, good or bad? 4) Tell me about what you guys do for fun.

3. Some questions to avoid: 1) What are the hours like here? (get that info later from an insider that you know better) 2) Anything related to compensation 3) What are your plans after banking? (we can’t answer that and we’ll all say we’re planning on staying in the near term…duh…)

4. Don’t stand up until I stand up.

- 126 silver bananas

Ethernet over Copper or T1 Internet - Which is best for your business enterprise?

Ethernet over Copper Internet (also abbreviated as EoC) provides business internet ( description here - http://ethernet-over-copper.co )-class internet connection with a comparable Service Level Agreement (SLA) as a T1 or Bonded T1. Much like T1 Internet, it's bandwidth will never be shared with others and also bandwidth speed is also the same speed up and down.

Ethernet Internet is always delivered through several sets of twisted copper cables as a native Ethernet signal, which is why it is referred to as Ethernet over Copper. A key benefit over (bonded) T1 lines is that EoC doesn't need costly devices (like a T1 router) at your location, since the hand-off is a common Ethernet wire which are then connected to any type of router or gateway.

It is usually far simpler to upgrade to a higher speed. Whereby changing your bonded T1 line could take weeks or months and often consists of new wiring and often new hardware, with Ethernet over Copper upgrading to a faster bandwidth is often as hassle-free as your carrier updating your your preexisting plan and that's it.

Ethernet over Copper employs prevalent technology and therefore more economical. A 10 Mbps EoC line may be as low as $775, and a 2Mbps EoC close to $225.

Business Ethernet Consistency

Ethernet over Copper circuits uses several pairs of copper . When one pair drops, your Ethernet circuit is still going (although at a slower speed). In addition, because less hardware is needed at the building, the chance of carrier hardware malfunction is minimized.

As stated at the beginning of this article, EoC has an SLA equivalent to T1's.

Ethernet over Copper Accessibility

Verizon was one of the first companies to deploy Ethernet over Copper. It's access was actually considerably modest and you also had to be inside a precise distance from an Ethernet-ready CO (around 1500ft).

In the past svereal years, greater numbers of enterprises have switched to Ethernet over Copper instead of T1 and Bonded T1 Internet. It is actually equally as reliable and secure as T1 Internet yet it provides a whole lot more bandwidth opportunities plus better value.

Shock and Awe vs. Forward Guidance...


https://www.sagia.gov.sa/Global/top_banner/1/monetaypolicy.jpgThe role of forward guidance in steering monetary policy and subsequently consumer/business expectations had emerged to be of primary importance as the FED struggled to cope with economic downturn witnessed at the aftermath of the financial crisis. With interest rates hovering about the zero lower bound this was the only channel of formulating short term rate expectations and by iteration long term rate trajectory.

However with the US continuing to move on a sustainable growth trajectory amidst global imbalances, the role of forward guidance in moving the economy from artificially low interest rates might be nearing its end. The debate of conducting monetary policy via commitment as opposed to ‘time inconsistency’ is an age old one with commitment winning by delivering the same output growth as compared to time inconsistent policy however with lower inflation. Forward guidance can be viewed as an offspring of the policy of commitment.

While economists have always advocated the policy of commitment, the relevance and effectiveness is challenged by the present global economic scenario. With impeccable technological progress ushering in an era of ‘productive disinflation’ (like development in horizontal fracking technology leading to lower oil prices). Price dampening of this kind can coexist peacefully with stagnating wages while simultaneously improving consumer welfare and perhaps lowering long term inflation expectations.

Market Commentary by: James Investment Research (3/23 - 3/27)

Stock Market Analysis

Last week stocks sagged with nearly 1,200 advancing against about 1,700 declining. Volume mostly declined on the pullback, but when stocks tried to rally Friday, volume fell off sharply. New highs were achieved by 367 NYSE issues, only 77 set new lows. Notwithstanding the relative number of new highs, it was, on the surface, a discouraging picture.

Margin debt declined again, and so did customer free credit, both thought of as negatives. Overall, the entire economic picture includes element of weakness as well as strength.

Architectural Signage Southwood Group Custom Graphics Specialists: Materialen & methoden

SouthWood biedt aangepaste interieur en exterieur ondertekent in een bijna onbeperkte verscheidenheid van materialen. Op basis van ontwerp-regelingen, begrotingen, structurele overwegingen, maten, afwerkingen en andere kwesties, helpen wij klanten bij het selecteren van de meest geschikte materialen. Het gaat hierbij om alle soorten hout, metaal, kunststof, metselwerk, harsen en meer. Het is veilig om te zeggen we hebben honderden verschillende materialen gebruikt door de jaren heen.

Worthwhile Home Upgrades

The best part about remodeling a home is choosing which upgrades to install, but it can also be the hardest part of the remodeling project. The reason choosing upgrades is so tough is because it is up to the homeowners to decide which upgrades are going to increase the home’s value, and which upgrades are not worth the money. The good news is that most upgrades will increase the value of a home to some extent. It all comes down to the purpose of remodeling. Are you remodeling your home to get more out of the sell price or are you upgrading your home to increase your quality of life?