Reality Check

<p>First, Im not trying to offend you or talk "****" to you. I know you have a experience in the financial sector (since you talk about it with knowledge). I was just trying to get my opinion out. I know from my professors and recruiters and friends who has been in wall streets and is still active in the financial sectors. I can tell you that they have ALOT more experience than you. From reading all the news and media, anyone can come to a conclusion that IB is dead and will not be revived, but not my opinion along with many I have talked with.</p>

<p>I understand where you are going with commerical bank restricting IB, but I also think that IB might just do as it is now since they have the "bankroll" to do it. And about government regulation, government has said this forever... they are being lobbied or something lol</p>

<p>I completely agree with you on the fact that IB is currently trash and kids on CC are just kids who are dreaming without knowledge. I think all your opinions are basically from CNBC, WSJ, CNN, and etc. I feel like I am reading an article when reading your comments. (nothing wrong with it...)</p>

<p>EDIT: Im not a HS student... lol I currently attend undergrad biz school, and is planning to go in either consulting, corporate finance, and maybe investment banking.</p>

<p>MonkeySee: I couldn't agree with you more...IB, as it operated in the last decade is DONE. Capitalism is the greatest economic system ever developed but its history is ripe with periods of excess . The response to what is happening today in our capital markets will be more regulation. The exact form and scope is yet to be debated and enacted but , mark my words, it will come. The type of leverage used on wall street will most certainly be restricted. Stand alone IBs might cease to exist. IB owned by commercial banks will be much more regulated.Maybe now some of our best and brightest young people will be attracted to industries that actually make products and sell services that are actually needed.The refrain from my IB buddies that "we help the capital markets operate efficiently" doesn't sound to good tonight. But I strongly believe our economy will be back but Wall Street will never be the same</p>

<p>just wanted to clarify something. The current crisis (which, as far as I know, was caused by bad bets made by mortgage traders) is NOT caused by bankers doing M&A/Corp Fin. work right? Isn't it caused by people working in S&T? if so, then why will IBD come under as much srcutiny by the government as much as S&T?</p>

<p>MonkeySee (or anyone): Can you comment on MM/boutique banks, such as Houlihan Lokey, Macquarie Group (USA), Moelis & Co., etc.? Were these guys hit hard enough by the crisis to cut recruiting? Or do you think their potential for growth will result in sustained demand for new analysts?</p>

<p>I'm planning on applying to the L.A. offices for MM/boutique firms.</p>

<p>that varies by the specific bank. in general hiring is stable to downward (moelis is really picking up its hiring though). simple supply and demand means its still going to b really competitive to get these positions. </p>

<p>For example, there's going to be a glut of qualified and already trained analysts out on the street, so they may shift the focus of hiring away from college recruiting to put more of an emphasis on lateral hires. Additionally, the fact that top firms have cut back hiring means that, even if the above weren't the case, way more people are going to be competing for these jobs. For example, people who in past years would be extremely competitive for top bb jobs are now shifting their focus onto places like hlhz, etc., simply because these top bb's just arent hiring that much, if at all.</p>

<p>"You cant say that IB were "rich" just because of weak government regulation."</p>

<p>Its quite easy to say it, and I'll repeat it for you if you need me to. It is the truth - after this mess, you can be sure that banks will come under a lot more regulation and they won't be able to rely on the high risk-high profit model any longer. I disagree that banking is "over," there will always be a place for them, but they will definitely not have the presence that they used to have. </p>

<p>And as for boutique banks, as someone said before, it does depend on what they specialized in. You'll see some fall, you'll see some change relatively little. But keep in mind that this banking crisis may bring down the economy with it.</p>

<p>How much the banking crisis will spread into the rest of the economy is anyone's guess. Fed & Treasury are currently trying to determine that right now. My uninformed guess is that it'll have a deep impact on the economy as credit gets tighter. You can also bet on NYC growth slowing significantly and slashes across public services with the loss of banking tax income.</p>