If indeed this is a sign of things to come, doesn’t look too encouraging: http://blogs.wsj.com/deals/2010/09/09/wall-street-layoffs-meredith-whitneys-case-for-a-bloodbath/ “Wall Street Layoffs: Meredith Whitney’s Case for a Bloodbath By Michael Corkery High-profile hires, August’s M&A splurge and the boom in corporate debt issuance. While some things are looking up on Wall Street, analyst Meredith Whitney has some advice: Don’t believe the hype. Bloomberg NewsIn a report distributed to her clients and obtained by Deal Journal, Whitney says Wall Street’s mega investment banks are undergoing “structural changes” not seen since the bursting of the Dot.com bubble. In the 38-page report, Whitney, who gained notoriety for her 2007 call that Citigroup was undercapitalized, lays out a gloomy scenario for the whole industry. Here are the highlights (or low lights): –80% of Wall Street’s core revenue comes from underwriting and advisory activity in the U.S. and Europe, which are in “secular decline,’’ as those economies stall. –Deal activity may have picked up recently, but M&A revenue isn’t a big part of investment banks’ revenue–only 8% on average. –Layoffs are coming. Layoffs are coming. Forget those high-profile hires , such as CIT Group’s former CEO Jeff Peak landing at Barclays or American International Group’s former chief Martin Sullivan going to the Willis Group, the legions of lower level traders, analysts and salespeople may be in for a rude awakening. Whitney expects lay offs of 40,000 to 50,000, or 5% to 10% of the U.S. securities industry. –Consumers and banks continue to delever. Sure, investment-grade companies like Hewlett Packard and Home Depot are taking advantage of the low interest rates to refinance or sell new debt. But banks are paring back their leverage because their largest customers–the U.S. consumer–are doing the same. –The one relative bright spot are the emerging markets, but activity there isn’t robust enough to offset the slowdown in U.S. and Europe. Some banks with more international exposure should be better positioned than U.S.-centric firms. Goldman Sachs has only half of its capital allocated to the U.S. and Citigroup has only 39%. On the other extreme: Bank of America has 82% exposure to the U.S and Morgan Stanley has 70%. For Wall Street bankers, it might be a good time to start considering that career move to Beijing or Rio.”
Meredith was a one hit wonder. No one cares what she thinks anymore
Doom and Gloom b**** who profited from the market crash and married a WWE wrestler.
hubris
I saw her on CSPAN Q&A last week. I was not impressed. I am sure she has plenty of brains, but her “presence” was really lacking. She certainly seemed pleasant enough.
That’s what focking with a wrestler can do to you, very sad!
is it bad to say that job growth on Wall Street will slow during a low-growth period for the U.S. and that job growth will remain high in high growth areas? i think this is common sense. the more financial capital that heads overseas, the more human capital that will follow it. we will be known as the ex-pat generation…
Bernanke Wrote: ------------------------------------------------------- > That’s what F with a wrestler can do to you, > very sad! Agree. Can you imagine those daily poundings Meredith gets from John Layfield? Hard to be a good analyst if you can barely walk in the morning, IMO.
As much as she seems like the “general fighting the last war”, I think there may be a kernal of truth to this. Growth in financial services will be abroad, and there is still an oversupply of smart, qualified kids from all over the world who stream into NYC everyday looking to earn a fortune b/c their parents read an article in the Wall St. Journal 10 years ago about Wall Street bonuses. At my firm, a mid level investment bank, we get hundred of applicants from the best schools in China/India everyday. Kids w/ 4.0 masters degrees in finance/economics/quants willing to work for $15 an hour. It’s insane.
I am not found of all the doom and gloom…but I do still get MBA’s and CFA’s appying to be my assistant and while I am not a slave driver it doesn’t pay all that well for all that education. In fact it would be harder to convince me to hire you for that job if you had all that education because I would train you and you would just leave.
1 - who gives a shi* about a perma-bear continuing to sell the same thesis? 2. to answer your question, so we are not one of the ones laid off
jpm351 Wrote: ------------------------------------------------------- > 1 - who gives a shi* about a perma-bear continuing > to sell the same thesis? In fairness, she’s predicted 8 of the last 2 recessions.
flynnch Wrote: ------------------------------------------------------- > Doesn’t this imply that being your assistant is just not a desirable position?
justin88 Wrote: ------------------------------------------------------- > jpm351 Wrote: > -------------------------------------------------- > ----- > > 1 - who gives a shi* about a perma-bear > continuing > > to sell the same thesis? > > In fairness, she’s predicted 8 of the last 2 > recessions. 8 of the last 2? sounds like she has predicted 400% of the recessions correctly
justin88 Wrote: ------------------------------------------------------- > jpm351 Wrote: > -------------------------------------------------- > ----- > > 1 - who gives a shi* about a perma-bear > continuing > > to sell the same thesis? > > In fairness, she’s predicted 8 of the last 2 > recessions. she’s good
justin88 Wrote: ------------------------------------------------------- > jpm351 Wrote: > -------------------------------------------------- > ----- > > 1 - who gives a shi* about a perma-bear > continuing > > to sell the same thesis? > > In fairness, she’s predicted 8 of the last 2 > recessions. I lol’ed
CFAcountry Wrote: ------------------------------------------------------- > justin88 Wrote: > -------------------------------------------------- > ----- > > jpm351 Wrote: > > > -------------------------------------------------- > > > ----- > > > 1 - who gives a shi* about a perma-bear > > continuing > > > to sell the same thesis? > > > > In fairness, she’s predicted 8 of the last 2 > > recessions. > > > > 8 of the last 2? sounds like she has predicted > 400% of the recessions correctly Hahaha… she’s so damn good!
i tell ya, its dumb comments like this that make me actually wonder if i am thinking correctly.
qqqbee would show her how its done
Yes, lord qqqbee would solve all our financial problems, if only more people would accept him as lord and saviour.