So the movie Boiler Room was really about Wall Street investment banks all along? Greg Smith’s book “Why I Left Goldman Sachs” comes out few days back. Here are a few quotes from the script.
“Greg Smith: Goldman Sachs, and other firms on Wall Street, started learning how to use the information they were getting from their clients, in order to bet with their own money. At times, betting against their clients. And you know, that’s a real changed mentality from how do we dowhat our client wants to do?
Continue reading “Greg Smith : Why I Left Goldman Sachs”
How can a bank like Lehman go down so fast?
FINANCIAL markets can be punishing and reversal of fortunes can be dramatic. More so, if an institution is overleveraged — when loan and investment books are much, much bigger than its capital. What compounds problems are strange accounting practice and high-risk nature of the loans and investments. There are also disclosure issues: Lehman, in its last conference call with investors, gave no clue Continue reading “Lehman Brothers Failure : (Back to School)”
Structure products remains the hot selling cake in the open economies of the world, even the Euro looks grim, people loosing confidence but certainly its US and the other emerging economy eyeing at European Union and trying to build hope against hope. Investment banks continue to sell the structure products them and customize as per the client needs. Continue reading “Investment Banks and the Structure products”