Trading Up

Interesting article on the transition of power...tensions and blurring lines between traders, salesmen and investment bankers

When Hank Paulson took joint charge of Goldman Sachs in 1994, the investment bank was enduring one of the worst years in its recent history.

Sudden swings in the financial markets had left the private partnership nursing heavy losses on its proprietary trading portfolio. The deficit wiped out income from Goldman's corporate finance operations and the firm narrowly avoided slipping into the red.

Twelve years later, as Paulson prepares to pass the baton to Lloyd Blankfein, the bank's president, the picture could hardly be more different. Now a public company, Goldman last Tuesday reported post-tax earnings of $2.29 billion for the three months to May its second-highest quarterly profit.

As striking as the turnround itself was the reason behind it. The big money had been made from trading in bonds, currencies, commodities and equities. Despite near-perfect market conditions, Goldman's traditional investment banking business which includes underwriting debt and equity issues as well as advising on mergers and acquisitions generated just 15 per cent of net revenues.

Read on.

 

Ab accusamus ex deserunt ipsa. Molestias quis libero nobis tempora. Ullam eos quam quas et reiciendis. Omnis rem non deserunt quidem sint et sint.

Rerum blanditiis optio suscipit dolorem fugit aperiam. Quae debitis incidunt deleniti expedita quos id libero. Voluptas consequuntur odit voluptatem voluptatem autem reiciendis exercitationem adipisci.

Career Advancement Opportunities

March 2024 Investment Banking

  • Jefferies & Company 02 99.4%
  • Goldman Sachs 19 98.8%
  • Harris Williams & Co. (++) 98.3%
  • Lazard Freres 02 97.7%
  • JPMorgan Chase 03 97.1%

Overall Employee Satisfaction

March 2024 Investment Banking

  • Harris Williams & Co. 18 99.4%
  • JPMorgan Chase 10 98.8%
  • Lazard Freres 05 98.3%
  • Morgan Stanley 07 97.7%
  • William Blair 03 97.1%

Professional Growth Opportunities

March 2024 Investment Banking

  • Lazard Freres 01 99.4%
  • Jefferies & Company 02 98.8%
  • Goldman Sachs 17 98.3%
  • Moelis & Company 07 97.7%
  • JPMorgan Chase 05 97.1%

Total Avg Compensation

March 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (19) $385
  • Associates (86) $261
  • 3rd+ Year Analyst (13) $181
  • Intern/Summer Associate (33) $170
  • 2nd Year Analyst (66) $168
  • 1st Year Analyst (202) $159
  • Intern/Summer Analyst (144) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”