agold wrote:
egy wrote:
i didn't read the full article.. so take what i say with a grain of salt. (the 9 pages scared me too agold)
while there's really terrible stuff happening, and likely more ahead... i think predictions that wall street as a concept is dead are ridiculous. bankers aren't going anywhere. things will adjust.. lessons will be learned... but financiers will always be needed. Perhaps we won't be as leveraged... and securities wont be as exotic, but the core functionality is still important.
the guy's been saying the same thing over and over again for the past 20 years.
Agreed. The advisory services and investment banking divisions are not going anywhere. Sales & Trading is due for a radical overhaul, but that has only been a recent phenomenom. Back in the 1980s, a majority of the big banks revenues came from advisory services. Over the past few years, they have come from S&T and these wild bets on the markets. It is bound to revert back to the old system.
Wall Street isn't going anywhere, but there will be much fewer bankers (and positions for mba and undergrad students) at least for a few years. I agree parts of S&T such as prop trading will be reduced if not eliminated, but basic market making will not go away. Even now, spreads are much wider due to low liquidity.