<p>Bravo, majayiduke. Really well said.</p>
<p>Barrons, Calcruzer, and others take note of what was written.</p>
<p>Ibankers took a bunch of the junkiest mortgage bonds, pooled them together, sliced them and then called them AAA-rated. Seems like lying and deception to me. I say let the hedge fund managers fund the $700 billion bailout. The average salary in 06 was $365 million-we just need a couple thousand of them.</p>
<p>u assume that there are that many hedge fund managers though</p>
<p>Some made a lot MORE than $400 mil. Take into account all the bank CEOs that had a part in this, hedge fund managers, all those bankers that pushed junk bonds as AAA, the bond rating agencies that pushed junk bonds as AAA, private equity firms, I'm sure we can come up with $700 billion. </p>
<p>Heck, Goldman Sachs' CEO was probably paid $100 million in the past two years.</p>
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Ibankers took a bunch of the junkiest mortgage bonds, pooled them together, sliced them and then called them AAA-rated. Seems like lying and deception to me.
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<p>why are people on this forum blaming IBD people for the crisis which, to me, seems to be caused largely by those working in S&T? It's those MBS traders that package the junkiest bonds and called them AAA-, not M&A/corp. fin people</p>
<p>It's also important to understand how the compensation structure works. Most of any earnings of any ibank MD remain in the firm until after they retire. When the firms become worth less, so do the net worths of the bankers.</p>
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If they were so smart why were they so stupid? People are mad because WS greed and stupidity has put THEIR own jobs at risk. If WS (what's left) does not GET that they are even dumber than I thought.
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<p>How were they stupid? They gets 10's of millions of dollars in salary/bonus for the past couple of years then get a nice big bonus when they're shown the door. Meanwhile guys like me (associates) get shown the door without the big severance. And it's not 22 yr old analysts or 26 year old associates that are making the bad decisions, it's the people at the top.</p>
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It's also important to understand how the compensation structure works. Most of any earnings of any ibank MD remain in the firm until after they retire. When the firms become worth less, so do the net worths of the bankers.
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<p>I don't feel bad for them. They deserve it. Heck, I wouldn't feel bad for them even if their entire net worth was wiped out.</p>
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I hope all you ibankers enjoyed the dirty money you made, now that you are likely jobless. Nice to see ibankers lose their jobs. It's just coemuppance for all the greed and your pursuit of money and prestige. Karma's a b*tch, isn't it, i-bankers?
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<p>Most of the jobs people on here are striving out of college for are corporate finance analyst jobs within investment banking that are not related to what the real mess is. To just lump everything together in investment banking sinners just shows you are devoid of any real knowledge of the subject. </p>
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This message is that otherwise unqualified Ivy League graduates in investment banks (who were selected for i-banking solely based on their pedigree and not their actual experience/job skills/personality) are the root of this economic crisis.
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<p>Clearly, this statement shows you have no knowledge of the investment banking interview process whatsoever. On what basis is someone more qualified to do a job when no one has any experience yet? Obviously, potential capability is an important factor that you ignore. Many times, the history major at Brown has a lot more intellectual horsepower than the business major at BC or UMichigan.</p>
<p>I hope all you ibankers enjoyed the dirty money you made, now that you are likely jobless. Nice to see ibankers lose their jobs. It's just coemuppance for all the greed and your pursuit of money and prestige. Karma's a b*tch, isn't it, i-bankers?</p>
<p>Wow, you are a ****** bag. I bet you craved to be in IB all your life and this post reflects your intrinsic desires, and now that Wall Street is in the pooper you're going of on a rant attacking people and making fun of them for losing their careers, get <strong><em>ed *</em></strong>**.</p>
<p>
10 characters</p>
<p>simpleperson, maybe b/c these are the same condescending d-bags who think they were hot s*** after landing that "fancy" investment banking job. Maybe b/c these soon-to-be-unemployed and unemployed ibankers need some hard lessons in life. Life is more than money and prestige. HTFH</p>
<p>Columbia_Student, what you posted doesn't change the fact the ibanking is for shallow, materialistic, Ivy League prestige wh0res who either don't have the grades to go to medical/law/PhD programs or don't know what they want to do with their lives except make a lot of money and be prestigious. </p>
<p>I am a victim of the recent economic mess. I blame Wall Street for this. I blame the crooks who serve as corporate executives at these big banks. </p>
<p>BTW, Dick fuld went to NYU for his MBA, so NYU (which is a top business school) is as much to blame as Colorado.</p>
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BTW, Dick fuld went to NYU for his MBA, so NYU (which is a top business school) is as much to blame as Colorado.
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<p>My point exactly. You want us to believe that you have to be some finance major to get into IB yet, apparently, those finance majors aren't exactly kicking ass now are they? </p>
<p>Reading your posts it's no wonder you got laid off. A little hint, it wasn't because of wall street, it was because of your own incompetence.</p>
<p>
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BTW, Dick fuld went to NYU for his MBA, so NYU (which is a top business school) is as much to blame as Colorado.
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<p>You are so simplistic, it's amazing. Neither Colorado or NYU are to blame. Fuld has 35 years of industry experience after getting his MBA, which certainly impacted his decisions and Lehman's course of action much more than his formal education. The capital markets, particularly structured finance, has changed so much since the early 1970's that it is incredibly naive and incongruent to attribute any of the economic crisis on what schools people attended two to four decades ago.</p>
<p>Don't bother gellino.</p>
<p>IAmYourFather is clearly struggling with an inferiority complex...He has yet to refute my points and continues to rant about elitism.</p>
<p>guess evry1 is gonna go to corporate law</p>
<p>I am very aware of how the credit system works and I have supported the bailout for that reason. I also support much stronger rules and supervision of all financial firms so this never happens again. Short-term lending to good companies is not rocket science and does not require high fees or extensive analysis. They can get money flowing in a week if they want to.</p>
<p>Hi Barron,
Personally, this whole financial crisis should never have been allowed to happen in the first place. I could not believe how those at the top would be so incompetent to place large bets on those subprime loans to begin with. This crisis is just as bad as the Dot.com bubble that began around a decade ago. Around 2003-2005, I started to notice a lot of housing units being built around my area, when in the past 20 years, there was very little development. When I saw entire areas land that was undeveloped for years suddenly gets built up overnight while existing units are vacant, I became alarmed by the rapid growth that might build itself into a prolong recession. I wondered where was all of this money coming from because I had never seen such a huge building boom on a large scale in my life. All building activities in South Florida comprised of Townhouses and condominiums. But single family homes were very rare. They charged so much and provide so little square feet of space. The commercial units comprised mostly of shopping malls and car dealerships. I once asked myself, "do we really need so many of these things alongside the existing areas?" This was something that was going to cause a lot of problems for years to come because of the over development that was allowed to take place by the developers who were looking to make a fast buck while the financial institutions were backing them up wholeheartedly.</p>
<p>All true. Most of the initial housing crisis was in just a few states--FL, CA, AZ and Nevada. If credit for normal buyers had not become so hard to get we would not be in anywhere nearly as bad a shape as we are today as the vast majority of markets were not that overheated and flimsy. But now it's too late and it might take years to recover. It's just a shame. Here in Washington our foreclosure rate is still in the normal range. But with 1000's now losing jobs some will be forced into it after the fact.</p>