Not long ago, Goldman Sachs was Wall Street’s lightning rod, attracting bad publicity and interventions from regulators. Its place has been taken by JPMorgan Chase.
Occupy Wall Street protestors rally in front of the New York Stock Exchange on March 30, 2012. Image by Getty
Perception tends to lag events, a phenomenon from which a lot of Wall Street bankers are suffering at the moment. While the general public believes they are still living it up on borrowed money, the reality – for many of them at least – is different.
The squeeze on investment banks, which took some time to occur following the 2008 financial crisis, is now kicking in. As Tony Jackson writes in his FT column, the glory days of easy money for bankers are over (for the time being, at least):
Across the western world, the public rhetoric about bankers is proving oddly durable. They caused our troubles, but are not sharing them. We suffer privations, they get bonuses.
That is somewhat behind events. Investment banking, at least, is in a slow-motion train wreck. The fact that some bankers are still in the buffet car squabbling over the last bottles of champagne is a distraction.
It is hard to believe now but there was a time before the credit crisis that the culture of investment banks had not always been linked to reckless greed and buccaneering.
Yes their darker dealings, regulatory failings and rising conflicts of interest were apparent to anyone with a passing familiarity with Wall Street or even the film of the same name. But there was also a positive side. Read more
Good, clear analysis from author Michael Lewis on last night on 60 Minutes on how Wall Street is currently coining it, taking advantage of the largesse of government support for markets.
This is hardly new for FT readers but as always, but the writer of Liar’s Poker was in typically trenchant form on the banks: Read more