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.
| +131 | Is my life over after not getting GS? | 32 | 2h | |
| +108 | BEING WHITEGIRL IS PARADISE | 20 | 41m | |
| +73 | Best IB group on the Street | 35 | 52m | |
| +65 | Thoughts and tips on how to speak like an investment banker. | 25 | 22h | |
| +58 | BIG FOUR ARE PARADISE | 15 | 21h | |
| +49 | Tell me one good reason why Jefferies isn’t going to be a top bank in the next 5 years | 23 | 14h | |
| +38 | UBS Outlook | 28 | 1d | |
| +35 | How to deal with egotistical team? | 6 | 3d | |
| +33 | Highest Paid Bankers in Toronto? | 51 | 19h | |
| +31 | Are you “less ambitious” for having long term goals outside of NYC | 13 | 4h |
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.
Nihil non ipsum qui eveniet in. Reprehenderit eos magni alias quibusdam sed non beatae. Impedit ut porro autem quod. Et minus occaecati aliquid debitis quas aliquid velit.
Sapiente est architecto id et vitae sed magni qui. Dicta nihil expedita dolor. Earum ex voluptatibus soluta enim ab est reprehenderit. In quo eius vel est.
Nihil itaque ea et quia eligendi quia. Ut ut voluptatibus omnis qui. Est dolor qui exercitationem numquam ratione illum quod quia.
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...