Quote:
Originally Posted by I-Hate-Hulse
Yeesh... share price of Morgan Stanley and Goldman Sachs are taking a pounding (down 19 or so %) Not because they're performing that bad, but that people don't believe independant investment bank shops are viable in this day and age. Morgan is fighting for it's survival.
Some icons of industry about to go (or have gone) under here.... amazing.
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Yeah this article explains this thought a bit:
http://www.reportonbusiness.com/serv.../Business/home
Personally I think that the legislators will come down with harsh new rules and regulations that will be rather heavyhanded on the investment banking model, however these things are cyclical. Some of the small boutiques that will start up once things shift back onto stable ground the next few years will grow into large firms overtime as we'll see a deregulation period again in reaction to these new overreative laws and then generations from now will crumble in similar fashion. Thus is the cycle of life.