Investment Banking - Recent Development

Hey there fellow moneys,

I am applying for a summer internship at Barclay and got to this question where I have to describe a recent development in the Investment Banking industry and the implications that it might have for the division to which I have applied.

I am wondering if anyone can give me some hints/ideas on this part as I know that it is a decisive question and don't want to mess it up.

Thanks!

49 Comments
 

I would point toward the emergence of the BRIC. Western IBs will need to tailor their services to support companies in different countries.

I am not cocky, I am confident, and when you tell me I am the best it is a compliment. -Styles P
 

I agree BRIC is a great idea.

Could talk about how the recent bailouts could lead to the government potentially regulating the industry in some way (compensation, amount of debt a company can hold, etc).

"What do you mean, you're gonna pass. Alan, the only people making money passing are NFL quarterbacks and I don't see a number on your back. "
 

Whats BRIC? and ye ive been reading they are now regulating compensation pays for executives from cash to convertible stock options.......to prevent what they think caused a majority of the financial crisis, can you guys please elaborate on these and the issue with regulating the amount of debt banks can now hold.....

 

I can't believe you asked what BRIC meant. Do you not know how to f@cking look something up on the Internet? You looked this site up right?

You can never work in high finance since your attitude is to ask for someone else to do it.

Seriously just delete your account and stop subjecting us to your retarded questions "what's BRIC" "what is iBD" "which sites have news"

Barclays don't want ya boy

 

Well said GOB.

Interested IND...you need to realize that this site is for insight on topics that are not readily available online. Before posting exhaust all your other informational tools.

"What do you mean, you're gonna pass. Alan, the only people making money passing are NFL quarterbacks and I don't see a number on your back. "
 

"In recent years, tens of thousands of S&T employees have continued to be laid off. The implication this development might have for the S&T division is that it might not hire me."

 

Percentage of loss in what respect?

Take all the publicly traded "investment banking" companies, calculate the change in stock price from Jan 1, 2008 to Dec 21, 2008. There you have it.

Or do some digging and find get an accumulated value of asset write downs since Jan 1, 2008 as a percentage of total assets Jan 1, 2008.

Not sure exactly what you're asking.

 

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Best Response

There is a post just like this (for Barclays, I think) somewhere else on the forums. The post received a number of responses, so you should probably start there.

Some ideas that probably weren't covered in that thread: - Disintermediation: One of BarCap's strengths is fixed income, especially in high yield. The relatively recent Goodman Global buyout (~$1.5B) showed that high-yield disintermediation is possible in middle market LBOs because the acquirer placed the debt directly to two hedge funds.

  • The potential trend towards "too big to fail" status: This topic has been discussed at great length on WSJ.com (search for an article published ~3 weeks ago about the premium ascribed to banks such as Citi/JPM/BofA who are so big that regulators wouldn't be able to let them collapse). Barclays is sufficiently large and diversified to warrant comparison.
 

Justanotherbanker: Thank you very much for the answers. Do you know any material - other than WSJ (it is restricted for non members) - where I can get more info on the 2 topics what you have just mentioned? It would be of great help, since I am not all that familiar with the details...

 

Goes along with the theme of disintermediation a bit, but can be spun more positively for banks...

The Portal Market (http://www.washingtonpost.com/wp-dyn/content/article/2007/08/13/AR20070…).

Huge for PE firms that want partial liquidity for their portfolio companies - can also tie in some other themes here like the rise of PE, the decline of public markets due to dot-com/SOX etc., and the changing roles of PEs vs. strategics in auction processes.

 

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