www.ft.com/cms/s/0/3411936a-5e44-11e1-85f6-00144feabdc0.html
Article talks about BarCap, CS, GS, JPM, MS, UBS, and RBS. Only BarCap and JPM had RoE of >10% for 2011. To get to 10% RoE, FT estimates that the other 5 will have to increase revenues or cut costs by an average of £1.5B. Comp ratios will have to come down to 25%-35%, down from the 40%-60% range in 2011.
What do you guys think?
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Make sure to work for JPM or BarCap then! Very interesting article though!
There will always be opportunities at the higher levels of the big banks, but I think the following types of firms would provide better career prospects, due to the structural changes in the industry and legacy issues: - Boutique & middle market is the way to go for a long term career in investment banking in my opinion. Perella, Moelis, Rothschild, etc... - Also, buyside firms (the large investment mangers, PE, HF and other firms) seem to have good prospects career wise for people who are more markets/investment oriented.
I don't know how lower profitability and bonus payouts at the big banks will affect these other players.
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