Is this industry toast?
http://dealbreaker.com/2012/10/layoffsbonus-watch…
Really seems like this is more than a cyclical downturn.
http://dealbreaker.com/2012/10/layoffsbonus-watch…
Really seems like this is more than a cyclical downturn.
+1,739 | Bank of America - Juniors Strike to start Monday May 6th | 198 | 13m | |
+605 | BOFA ALREADY TRYING TO COVER UP THEIR TRACKS | 69 | 9h | |
+416 | This is a dark day for Wall Street. | 24 | 34m | |
+154 | Investment Banking US League Table YTD 2024 (FactSet) | 85 | 20h | |
+150 | Big Layoff at Barclays - 5/1/24 | 86 | 3h | |
+93 | “Americans just work harder” | 54 | 16h | |
+73 | Shame on you, BofA. But also, the industry needs to change. | 12 | 5m | |
+73 | Analyst at Bofa FIG-Thoughts | 7 | 16m | |
+72 | Sleeping on Jefferies??? | 35 | 17h | |
+67 | BofA List | 7 | 15h |
Career Resources
Don't work for BB's. They're all fucked.
The downturn has both cyclical and fundamental component changes.
This kind of news isn't too surprising if you consider the latter type. As a group, the bulge bracket will look much different in several years time. MS is just one of a number of banks shuffling their businesses around and creating a new image; the BBs that will perform best in the future will be those that smart changes to their business model now. How this affects employees in various divisions is still up for debate.
So, no, I don't think the industry is toast, it's just changing. Whether firms try and hold comp but cut heads or vice versa is an issue which interests me. In reality it's probably a little of both. But, M&A activity will pick up one day, and banks will hope to find another profit centre to replace lost trading revenues, and not necessarily the same profit centre for all either.
Were I an incoming analyst, I think I'd still feel great at a BB. They're still happening places with great opportunities if you want a career in finance.
What I don't understand is how much you can realistically reduce analyst pay and still expect those sorts of hours.
Because there are few options and companies know it. New analysts can kill it for cheap for a few years and they know that too.
Pre-Crisis:
(HUGE GAP)
Post Crisis:
Goldman, Sachs & Co.
(HUGE GAP)
J.P. Morgan
(HUGE GAP)
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