I've read on the forums that the banking economy is terrible right now. It seems like every bulge bracket is cutting down on jobs and slashing salaries. This may seem like a really ignorant question, but why is this? I understand the economy as a whole is terrible right now, but why is banking in particular so effected? Especially compared to other professions like consulting, in which some firms are actually growing?
Any help/links would be much appreciated. Thanks.
| +168 | Why do JEF bankers always think they’re EB? | 53 | 4d |
| +84 | Do people still want to go PE? | 27 | 2h |
| +60 | Bloomberg - New UBS Investment Bankers See Smaller Pay Gain on Promotion | 12 | 1d |
| +46 | Think I'm fucking up my analyst years | 16 | 2d |
| +27 | Big 4 M&A vs. Lincoln Portfolio Valuations | 6 | 3d |
| +27 | Lazard hirevue | 9 | 5h |
| +26 | Ambitious CC Student trying to break into IB | 13 | 2d |
| +26 | What Differentiates the Best Analysts as AI Improves? | 5 | 1h |
| +19 | Not doing well mentally, how are others doing? | 7 | 4d |
| +17 | Baird getting carved up?? | 6 | 2d |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
i personally believe that banking skills are getting commoditized, driving margins down, but have not done the research to back it up. complete guess on my part.
On the S&T side of things trading volumes are way down and prop trading is being regulated out. On the investment banking advisory and financing side you have to realize that banking is a cyclical industry. When the economy does well investment bankers do REALLY well but when the economy is poor as it is currently investment bankers do REALLY poorly. No one wants to acquire a company, be acquired, or raise capital right now because economic fundamentals are pointing toward continued sluggish demand, growth, uncertainty, and low asset values.
M&A volume has been average or a little better than average as well as companies can raise capital cheaply to make acquisitions.
Your statement that bankers do better in a strong economy is correct, but they don't exactly do poorly in a weak economy.
Et corrupti quis quas et cum. Nihil et id vitae iste ut magni. In officia aut numquam at est voluptatem quae.
In exercitationem quod delectus qui. Quis impedit inventore quis omnis. Dignissimos quasi iure temporibus velit omnis perspiciatis earum vel. Et ea qui ut ut maxime. Libero dolorem asperiores et voluptates omnis. Aperiam qui rerum inventore ut ratione.
Autem sunt officia explicabo ducimus et quos. Et ea cum illo pariatur cupiditate aut. Autem delectus deserunt veritatis aut distinctio modi. Est ad aperiam porro tempora suscipit. Sed omnis quos tempora numquam eum. Eum sapiente cumque non non quo tempora assumenda.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...