Investment Banking - Recent Development

Hey there fellow moneys,

I am applying for a summer internship at Barclay and got to this question where I have to describe a recent development in the Investment Banking industry and the implications that it might have for the division to which I have applied.

I am wondering if anyone can give me some hints/ideas on this part as I know that it is a decisive question and don't want to mess it up.

Thanks!

Comments (49)

Dec 21, 2012

Is this for NY or a regional office?

Dec 21, 2012

It is for EMEA in London.

Dec 21, 2012

Did you seriously hash tag your tag?

My name is Nicky, but you can call me Dre.

Dec 21, 2012

Mention something about the economic climate in the area and how that affects the bank. They want to see that you can write intelligently about something and know where the bank fits in...that is if they read it at all.

Dec 21, 2012
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Dec 21, 2012

hmm...I had the LIBOR-scandal in mind though I am not sure if it would be a wise to mention it given that Barclays was one of the villains in this case...

Dec 21, 2012

I would point toward the emergence of the BRIC. Western IBs will need to tailor their services to support companies in different countries.

I am not cocky, I am confident, and when you tell me I am the best it is a compliment.
-Styles P

Dec 21, 2012

I agree BRIC is a great idea.

Could talk about how the recent bailouts could lead to the government potentially regulating the industry in some way (compensation, amount of debt a company can hold, etc).

"What do you mean, you're gonna pass. Alan, the only people making money passing are NFL quarterbacks and I don't see a number on your back. "

Dec 21, 2012

Whats BRIC? and ye ive been reading they are now regulating compensation pays for executives from cash to convertible stock options.......to prevent what they think caused a majority of the financial crisis, can you guys please elaborate on these and the issue with regulating the amount of debt banks can now hold.....

Dec 21, 2012

BRIC = Emerging markets countries (i.e. Brazil, Russia, India, China).

Dec 21, 2012

Mentioning BRIC should suffice. Perhaps, a short discussion on the record levels of cash companies are holding on their balance sheets and how this may lead to an increase in M&A.

I recommend reading the NYT Dealbook. There are always a few articles about the overall conditions in the industry and its near-term forecast.

Good luck.

Dec 21, 2012

I really hope someone from BarCap's HR reads WSO so that they can catch your phony ass

Dec 21, 2012

I can't believe you asked what BRIC meant. Do you not know how to [email protected] look something up on the Internet? You looked this site up right?

You can never work in high finance since your attitude is to ask for someone else to do it.

Seriously just delete your account and stop subjecting us to your retarded questions "what's BRIC" "what is iBD" "which sites have news"

Barclays don't want ya boy

Dec 21, 2012

How is that Barclays application coming?

"Well, you can do whatever you want to us, but we're not going to sit here and listen to you badmouth the United States of America."

Dec 21, 2012

Well said GOB.

Interested IND...you need to realize that this site is for insight on topics that are not readily available online. Before posting exhaust all your other informational tools.

"What do you mean, you're gonna pass. Alan, the only people making money passing are NFL quarterbacks and I don't see a number on your back. "

Dec 21, 2012

Barcap quality sure has gone down.

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Dec 21, 2012

You're not seriously considering using a response from WSO for a job application, are you?

Dec 21, 2012

a lot of bad stuffs hapepned but its ok cuz i kno u guy r a grate compayu to work 4. so far latel i no that goldman sachs is the best bank so i hope to work for them... but ur company good too for a backup lollz... i like investment bankng its on its way upp

PS: this is for barclays isn't it?

Dec 21, 2012

haha yep thats barclays.

Dec 21, 2012

ha ha that is gold! Essay my ass...

Dec 21, 2012

are these essays even looked at? I feel like this is just to make sure your not an idiot. Will it sway an real decisions if your short essay isnt as good as others?

Dec 21, 2012

Barclays app?

Dec 21, 2012

"In recent years, tens of thousands of S&T employees have continued to be laid off. The implication this development might have for the S&T division is that it might not hire me."

Dec 21, 2012

Honestly I wouldn't get too flustered about this. They aren't going to offer you an interview or not based on your response. Just think about the people who are screening these..

Dec 21, 2012

Google JOBS Act

Dec 21, 2012

yup, first read in barclays.
and thank u guys.

Dec 21, 2012

Percentage of loss in what respect?

Take all the publicly traded "investment banking" companies, calculate the change in stock price from Jan 1, 2008 to Dec 21, 2008. There you have it.

Or do some digging and find get an accumulated value of asset write downs since Jan 1, 2008 as a percentage of total assets Jan 1, 2008.

Not sure exactly what you're asking.

Dec 21, 2012

I'm asking for percentage of loss in total employment in the investment banking industry.

Dec 21, 2012

Its the same principal chief. Take the top 10 investment banks... total head count Jan 1, 2008, add up all the layoffs at those banks and do the math.

No one knows this shit off the top of their heads, if thats what you're looking for.

Dec 21, 2012

student-who-cleverly-implies-he-smokes-weed, I found a site that has all the information you need:

http://letmegooglethatforyou.com/?q="Layoff+Tracker+-+Forbes.com"

Dec 21, 2012

letmegooglethatforyou.com is perhaps my favorite website.

  • Capt K
Dec 21, 2012

here's a good way to quantify an answer to your question... i'm not at work so i don't have access to bloomberg right now but you could go to bloomberg and pull up year over year league table results and see what shrinkage there has been in MandA activity or underwriting activity.

Dec 21, 2012

Volume will come back, but you are right, IBD is not a 20+% ROE business unless you're in a raging bull market...i think it will be a profitable business this year with M&A coming back ever so slightly and some marquee IPOs on the horizon (think fbook, linkedin, silver spring) and continual restructuring

Dec 21, 2012

agreed with above post. But trading profits are always higher.

Dec 21, 2012

The GS record profits weren't from prop trading from what I understand, it was S&T

Dec 21, 2012
zykke:

The GS record profits weren't from prop trading from what I understand, it was S&T

The prop trading desks are part of Securities (S&T), except for GSIP which sits within GSAM.

  • justanotherbanker
  •  Dec 21, 2012

There is a post just like this (for Barclays, I think) somewhere else on the forums. The post received a number of responses, so you should probably start there.

Some ideas that probably weren't covered in that thread:
- Disintermediation: One of BarCap's strengths is fixed income, especially in high yield. The relatively recent Goodman Global buyout (~$1.5B) showed that high-yield disintermediation is possible in middle market LBOs because the acquirer placed the debt directly to two hedge funds.

  • The potential trend towards "too big to fail" status: This topic has been discussed at great length on WSJ.com (search for an article published ~3 weeks ago about the premium ascribed to banks such as Citi/JPM/BofA who are so big that regulators wouldn't be able to let them collapse). Barclays is sufficiently large and diversified to warrant comparison.
Dec 21, 2012

Justanotherbanker:
Thank you very much for the answers. Do you know any material - other than WSJ (it is restricted for non members) - where I can get more info on the 2 topics what you have just mentioned? It would be of great help, since I am not all that familiar with the details...

  • justanotherbanker
  •  Dec 21, 2012

I found the other thread and it only discusses MiFID. MiFID is worth mentioning but probably not as timely as the two topics I posted above.

Dec 21, 2012

Goes along with the theme of disintermediation a bit, but can be spun more positively for banks...

The Portal Market (http://www.washingtonpost.com/wp-dyn/content/artic...).
Huge for PE firms that want partial liquidity for their portfolio companies - can also tie in some other themes here like the rise of PE, the decline of public markets due to dot-com/SOX etc., and the changing roles of PEs vs. strategics in auction processes.

Dec 21, 2012
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  • justanotherbanker
  •  Dec 21, 2012
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Dec 21, 2012