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BrilloPad
16th January 2009, 07:39
http://www.telegraph.co.uk/finance/breakingviewscom/4246641/The-bottom-for-investment-bank-is-slipping-from-view.html

The failure of the US firm sent the industry into a tailspin. Losses piled up and the streets of Manhattan and London were strewn with discarded bankers. But the upheaval doesn’t seem to have marked the trough. It now looks as though it was merely a signpost to steeper descent.

December is turning out to have been devastating. Would-be survivors already have revealed deeper worries. Deutsche Bank, which had navigated the crisis more deftly than most, lost nearly 5bn euros in the fourth quarter on bad bond and equities trades. Barclays, which had been aiming to maintain flat headcount to grab market share in investment banking, made 2,100 redundant from the division on Tuesday – and another 2,100 the next day from its retail and commercial bank.

Bank of America, which rode to the rescue of Merrill Lynch, is reportedly close to receiving billions of dollars more of taxpayers’ funds to help it shore up the stumbling Herd. Even JPMorgan’s investment bank posted sizeable losses.

Most aspects of the business have suffered. Prime brokers will be reeling from the news that a record $150bn – or 10pc of the industry’s assets – was yanked out of the hedge funds they service last month alone.

It was the worst December for equity issuance since 2002, according to Thomson Reuters, and November and December were the two worst months for M&A since September 2004. Jamie Dimon, the JPMorgan boss, has even suggested the formerly lucrative businesses of leveraged lending and securitisation will never come back.

These could be especially bad omens for Goldman Sachs and Morgan Stanley. The bank holding companies formerly known as investment banks already have suffered losses and slashed jobs. But their quarters began – rather than ended – in December. This means if the emerging snapshot of the markets is accurate, Goldman and Morgan Stanley may have started off in yet another hole.

More broadly, the growing pile-up of bad news suggests conditions throughout investment banking could get worse before they get better. Profits will be more elusive than previously thought. Job losses will mount. The bottom once in sight may have slipped from view.

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Usually the darkest bit is just before dawn.

AlfredJPruffock
16th January 2009, 07:52
Good riddance to all that unproductive backstabbing greedy scum.

Hope they all decide to do something socially useful.

Jubber
16th January 2009, 08:07
I recently had a meeting with a large banking group which has an IB arm. To quote one of their bods in the meeting


We expect a great deal of turbulence in that part of the bank over the coming year

dinker
16th January 2009, 08:26
Good riddance to all that unproductive backstabbing greedy scum.

Hope they all do soemthing socially useful.

Politicians?

BrilloPad
16th January 2009, 08:31
Politicians?

Estate agents.

Xenophon
16th January 2009, 09:08
Estate agents.

Whores.

Zippy
16th January 2009, 09:11
Whores.

Pimps?

DimPrawn
16th January 2009, 09:14
All the banks are still up to their eyes in leveraged debt and toxic assets.

Luckily Labour are creating a bad bank to hold them all at taxpayers expense.

Personally I'd be happier if the assets of every banking employee were seized and sold to help pay for it all. Greedy, lying, evil ****ers. :mad

AlfredJPruffock
16th January 2009, 09:16
Awww - the poor wee lambs !

Hard w@nking Bankers !

Purple Dalek
16th January 2009, 09:48
All the banks are still up to their eyes in leveraged debt and toxic assets.

Luckily Labour are creating a bad bank to hold them all at taxpayers expense.

Personally I'd be happier if the assets of every banking employee were seized and sold to help pay for it all. Greedy, lying, evil ****ers. :mad

Unfortunately that wouldn't be nearly enough to cover it all. They really have invented that much money.

Only a good bout of inflation will get rid of it.

BrilloPad
16th January 2009, 10:00
All the banks are still up to their eyes in leveraged debt and toxic assets.

Luckily Labour are creating a bad bank to hold them all at taxpayers expense.

Personally I'd be happier if the assets of every banking employee were seized and sold to help pay for it all. Greedy, lying, evil ****ers. :mad

I am pleased you said employee. So us contractors get to keep our filthy lucre?

Well : that we haven't spent on champagne, dancing girls or snorted.......

darmstadt
16th January 2009, 14:34
Got an interview at an IB in Frankfurt for a years contract next week but not too hopeful as the parent company has just posted large losses :ohwell

Mich the Tester
16th January 2009, 14:41
Got an interview at an IB in Frankfurt for a years contract next week but not too hopeful as the parent company has just posted large losses :ohwell

Your new avatar looks distinctly German.

Purple Dalek
16th January 2009, 14:44
Your new avatar looks distinctly German.

I pondered and realised that picture in my mind of what would happen if you farted in a gimp suit...

darmstadt
16th January 2009, 14:50
I pondered and realised that picture in my mind of what would happen if you farted in a gimp suit...

Too much Würst, Ebbelwoi und Handkäs mit Musik :D

d000hg
16th January 2009, 14:52
Pimps?Contractors?