Investment Banking Business Model

What do people think of the current universal banking model. In terms of inherent synergies among the various functions of the bank- trading, banking, research, PWM etc. along with having a commercial banking platform. Does anyone think it'd be more economically efficient to splitting up their business models. I'm talking in terms of multiples and synergies--> would this result in greater multiple valuations or no change at all. The banking model seems to be efficient in the sense that it can be a 'one stop' shop for multiple products and services for institutional clients, so perhaps the instituional clients groups at the banks are optimal as is. But, in terms of other business functions (insurance, retail banking, credit cards, commercial banking in general etc), is there any rationale for the universal banking model, coupling institutional clients with retail. Perhaps not as articulate as i'd like, but i'd like to hear some thoughts on the current business models.

16 Comments
 

Epic fail at trying to stimulate some sort of intelligent conversation. Use the fucking search function -- we've had pimple faced fourteen year olds like you prophesy the end of the "universal" model before.

 

Didn't prophesize anything. Calm down over there. Is everything ok? Ha Ha. I never understand how people get angry over something like that. I'm a college junior,21. The big times buddy.. If I were 14 on this site, I would think I was doing OK. Pretty good head start i'd say.

 
Best Response

Actually wait, I forgot, you read the Vault guide, so you know the answer. You are officially an authority on the investment banking model, and in a very concise, well thought out, obviously brilliant post you captivated in a few lines, what world renowned economist and financers debate over. Keep watching CNBC, reading an op-ed in the journal, and before I forget, the beloved Vault Guide. You now know what EBITDA stands for and what a DCF is, and what traders do, you are all set for a very successful, and wealthy career on Wall St.

The problem right now isn't that I am a 'pimple faced 14 year old', but its that you are a pimple faced 21 year old who probably looks like their 14. Ha ha, i am mildly upset although amused, that I was just dissed on a fucking forum. What is the world coming to. Go Vault Guide!

 

Buddy, sorry to say, but talking tough on a forum is not going to compensate for how unattractive you are and how you never made the basketball team. I know its eating you up inside, and you think becoming a banker will make everthing all better. Those of us who will succeed on Wall St. will be those that question everything, are intelligent, always looking for new information, agressive, and most importantly, my favorite, have VERY CHISILED features, like myself. If you are a junior in college , you have no where close to all of the answers. Not even a fucking inkling. So instead of talking out of your ass like Maria Bartorma on CNBC like you know finance, ask some questions to actually learn something. For all of those on here, who thought they cured cancer by knowing what a DCF is.... Actually, wait nevermind. That is the cure for cancer.

 
mergerarb15Buddy, sorry to say, but talking tough on a forum is not going to compensate for how unattractive you are and how you never made the basketball team. I know its eating you up inside, and you think becoming a banker will make everthing all better. Those of us who will succeed on Wall St. will be those that question everything, are intelligent, always looking for new information, agressive, and most importantly, my favorite, have VERY CHISILED features, like myself.

http://en.wikipedia.org/wiki/Psychological_projection

 
Those of us who will succeed on Wall St. will be those that question everything, are intelligent, always looking for new information, agressive, and most importantly, my favorite, have VERY CHISILED features, like myself.

Ain't it ironic that a pussy is so fucking cocky?

 

I hope you guys find jobs so you don't end up trying standup comedy.

Jack: They’re all former investment bankers who were laid off from that economic crisis that Nancy Pelosi caused. They have zero real world skills, but God they work hard. -30 Rock
 

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