So, there’s pretty much no bulge bracket anymore… I wonder if they’ll be offering GS debit cards soon
Since GS and MS are now bank holding co’s are they gonna open their own branches, buy up regional banks, or maybe do an Etrade/ING style online bank?
kant Wrote: ------------------------------------------------------- > So, there’s pretty much no bulge bracket > anymore… > > I wonder if they’ll be offering GS debit cards > soon Yup but eventually we’ll have a new group of leaders with new terminology. These things happen in cycles. Things don’t stay the same forever.
I’m betting on Moelis making a very strong move in the next year or so. They’ve been in operation for only a year and are very respectable. The path to the top has been cleared so it’ll be even easier for them.
what makes them better than greenhill or quadrangle?
GS Platinum or MS Gold? Any takers? No, that’s too good. Golman Sachs Airmiles special or Morgan Stanley Cash Back on grocery purchases. You gotta love it.
barrons said piper, blair, and other smaller IBs will prevail - see Saturday edition
My thought is that any banks that are able to transition from boutique into a bigger player, will remain private, after seeing what the market is capable of doing. They don’t need to risk it. They can stay private and thrive just like Goldman did up until the 90s.
You guys are wrong. BB guys will always be around, they are kings of wall street. Don’t even think of their extinction. Just that BB now stands for 'Blip Bracket". Their Bulge has become a Blip.
Next on the extinction list according to Nouriel Roubini:http://www.rgemonitor.com/roubini-monitor/253696/the_shadow_banking_system_is_unravelling_roubini_column_in_the_financial_times_such_demise_confirmed_by_morgan_and_goldman_now_being_converted_into_banks “The next stage will be a run on thousands of highly leveraged hedge funds. After a brief lock-up period, investors in such funds can redeem their investments on a quarterly basis; thus a bank-like run on hedge funds is highly possible. Hundreds of smaller, younger funds that have taken excessive risks with high leverage and are poorly managed may collapse. A massive shake-out of the bloated hedge fund industry is likely in the next two years. Even private equity firms and their reckless, highly leveraged buy-outs will not be spared. The private equity bubble led to more than $1,000bn of LBOs that should never have occurred. The run on these LBOs is slowed by the existence of “convenant-lite” clauses, which do not include traditional default triggers, and “payment-in-kind toggles”, which allow borrowers to defer cash interest payments and accrue more debt, but these only delay the eventual refinancing crisis and will make uglier the bankruptcy that will follow. Even the largest LBOs, such as GMAC and Chrysler, are now at risk. We are observing an accelerated run on the shadow banking system that is leading to its unravelling. If lender-of-last-resort support and deposit insurance are extended to more of its members, these institutions will have to be regulated like banks, to avoid moral hazard. Of course this severe financial crisis is also taking its toll on traditional banks: hundreds are insolvent and will have to close.”