Is FBR taken seriously?

Hey, I was wondering if anyone takes FBR seriously. They were once considered a pretty good boutique I think, as they handled smaller deals (especially during tech boom and other stuff in D.C. area) They were trading at 0.21 cents as of closing price today, although the group they spun off, FBCM (for FBR Capital Markets), was trading at $3.03. I was just wondering if people still consider it a reputable firm, or if it has lost a lot of its respect and prestige. Any insight would be helpful. Are its executive board considered competent and well respected, or has it become a joke and laughingstock. Thanks again in advance for shedding any light on this.

 

As the firm's founders have peeled off the start their own operations, the reputation has diminished and culture has grown less professional. I've spoken with former FBR folks who have fond memories of the firm, but more recent employees are less positive.

FBR has a reputation for being especially nepotistic, aptly nicknamed Friends, Brothers and Relatives. A current analyst describes the work environment as a southern frat house, because this is where they source all of the recruits. As such, a person's capability is often overlooked.

 

They are also changing their name... what's up with that? It seems so odd to change a name, although perhaps they are trying to go in a new direction.

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
 

FBR was hit very hard by the recession. It used to be one of the best FIG groups in the MM space, but it has definitely fallen below other names (e.g. SO, KBW/Stifel). It shed a ton of jobs and talent and lost some key people in the manufacturing and industrials group and aerospace/defense.

Read up on 144a. http://en.wikipedia.org/wiki/SEC_Rule_144A.

Exit opps are probably another bank, possibly corp dev or MM PE. Do you know what coverage group you will be joining?

 

I would stay away unless it is your only option. I spoke to an MD there when I was looking for jobs as a sophomore and he basically said "you don't want to come to a place like this- go apply to GS, JP, MS (easier said than done" and contact me if you can't find anything else. I think that speaks to the morale and how they see themselves. Not an environment I would want to be in myself.

 

Went through the FT interview process with FBR Capital Markets. 100% fit and competency - really know why you want to be in banking, and be prepared to demonstrate that through past experience. The people I spoke to said they're looking for those who are extremely motivated and who display a thirst for knowledge, beyond that of your typical Fin/Acct courseload.

 

Thanks alot for the info. Do you have any information of what the comp structure is like? Im assuming since they are based in DC it is probably below street. Also any other banks in the DC area?

 

They gave me quite the run around. Had a first round in office, didnt hear back from them for 6 weeks, invited me back for final round with MD's, another 5 weeks later they give me a "sorry but blah blah blah". They dont know what theyre looking for. (was for S&T)

 

The market thinks differently (re FBR struggling). Stock's up 80%+ YoY FBRC. I think they're still far from where they were 5 years ago though and recently sold their previously solid AM/fund arm.

 
seantsghost:

The market thinks differently (re FBR struggling). Stock's up 80%+ YoY FBRC. I think they're still far from where they were 5 years ago though and recently sold their previously solid AM/fund arm.

Capital Markets is holding up the company. M&A is a joke though. Look at the size of the deals they've been doing recently. Several sub-$20mm.

I revised my post.

 
seantsghost:

The market thinks differently (re FBR struggling). Stock's up 80%+ YoY FBRC. I think they're still far from where they were 5 years ago though and recently sold their previously solid AM/fund arm.

Have you been sleeping under a rock? The market has no idea what's going on, were're at record highs. SMH.

'Before you enter... be willing to pay the price'
 
clammers1234:

Talked to someone who worked there last year (bounced to another bank since) and told me it's a sinking ship and to steer clear...

Yea, I knew two associates (one pre one post-MBA) and VP and both are long gone. It's become a sweat shop b/c they just kept cutting staff or eliminating open positions.

And for what? A $12mm M&A transaction?

 

@ Bep. You're an idiot. I'm not saying the market isn't overvalued, but "record highs" or any index value is trivial and has nothing to do with relative valuations of stocks. Except for shitheads like you, clearly.

To my original point, I don't cover the stock, own the stock, nor have I even peeped the 10-k. No horse in the race here. I was just trying to play devil's advocate and pointing out that somebody (~60% institutional ownership of FBRC) sees some value in the firm.

Peinvestor has since provided a little bit more helpful insight on some specific aspects of the company.

 
seantsghost:

@ Bep. You're an idiot. I'm not saying the market isn't overvalued, but "record highs" or any index value is trivial and has nothing to do with relative valuations of stocks. Except for shitheads like you, clearly.

To my original point, I don't cover the stock, own the stock, nor have I even peeped the 10-k. No horse in the race here. I was just trying to play devil's advocate and pointing out that somebody (~60% institutional ownership of FBRC) sees some value in the firm.

Peinvestor has since provided a little bit more helpful insight on some specific aspects of the company.

Not trying to defend Bep here, but I think where he was going is if the market has experienced a big run up as a whole, maybe FBR's 80% improvement YOY isn't as much of an anomaly as one may generally think.

 

You're right, and either way I shouldn't have called him a shithead- Sorry Bep, there was no need for me to be a dick.

For what it's worth though- Powershares small cap financials (PSCF) +15% YoY - not a perfect benchmark but hey.

 
seantsghost:

You're right, and either way I shouldn't have called him a shithead- Sorry Bep, there was no need for me to be a dick.

For what it's worth though- Powershares small cap financials (PSCF) +15% YoY - not a perfect benchmark but hey.

We all get a little excited sometimes...

'Before you enter... be willing to pay the price'
 

Quisquam sed culpa et. Architecto aut dolore nesciunt ipsam. Neque omnis et dolorum omnis molestiae possimus pariatur. Nulla perspiciatis veniam voluptas non. Beatae doloremque enim commodi vel. Voluptatem voluptatem quae nihil.

Ut sed minima nesciunt vitae facilis rem. Perferendis libero voluptatem et delectus ut atque.

 

Rerum ex quam qui quos aut consequatur sapiente assumenda. Quia molestiae optio odio similique. Aliquid voluptatem aut omnis. Libero earum cumque veniam nesciunt numquam. Corporis vero vel rem dolorem ut odit ipsam officia.

Accusamus similique quidem vel. Facere sint accusantium sed. Voluptas ut sed et rerum sint voluptatem. Facere deserunt nulla officiis at et voluptatem quia. Nobis libero non corrupti dolores facere.

Career Advancement Opportunities

March 2024 Investment Banking

  • Jefferies & Company 02 99.4%
  • Goldman Sachs 19 98.8%
  • Harris Williams & Co. (++) 98.3%
  • Lazard Freres 02 97.7%
  • JPMorgan Chase 03 97.1%

Overall Employee Satisfaction

March 2024 Investment Banking

  • Harris Williams & Co. 18 99.4%
  • JPMorgan Chase 10 98.8%
  • Lazard Freres 05 98.3%
  • Morgan Stanley 07 97.7%
  • William Blair 03 97.1%

Professional Growth Opportunities

March 2024 Investment Banking

  • Lazard Freres 01 99.4%
  • Jefferies & Company 02 98.8%
  • Goldman Sachs 17 98.3%
  • Moelis & Company 07 97.7%
  • JPMorgan Chase 05 97.1%

Total Avg Compensation

March 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (19) $385
  • Associates (86) $261
  • 3rd+ Year Analyst (13) $181
  • Intern/Summer Associate (33) $170
  • 2nd Year Analyst (66) $168
  • 1st Year Analyst (202) $159
  • Intern/Summer Analyst (144) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
Secyh62's picture
Secyh62
99.0
3
Betsy Massar's picture
Betsy Massar
99.0
4
BankonBanking's picture
BankonBanking
99.0
5
kanon's picture
kanon
98.9
6
DrApeman's picture
DrApeman
98.9
7
dosk17's picture
dosk17
98.9
8
CompBanker's picture
CompBanker
98.9
9
GameTheory's picture
GameTheory
98.9
10
numi's picture
numi
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”