Just months ago, Bear Stearns, Lehman Brothers and Merrill Lynch were considered to be among the top 5 investment banks. They were the so-called bulge bracket firms – the premiere league players, the Ferraris, the LVs…
They are now all gone.
Bear was acquired by JP Morgan Chase for just US$10 a share in May 2008.
Merrill Lynch has just been acquired by Bank of American for a more reasonable US$29 a share, while the poor Lehman Brothers could not find a suitable buyer and had to file for bankruptcy – rendering its shares worthless overnight.
Many employees may be retrenched soon.
With Citigroup shaky, this recent turn of events leaves the world with just 2 ibanking giants – Morgan Stanley and Goldman Sachs.
If you’re an ibanker, consider yourself lucky if you work for MS or GS. Hold on dearly to your jobs.
For those who will be displaced, take care. Hope you have enjoyed yourselves and saved up a bit while the good times lasted.
Maybe an investment banking career isn’t that good after all. See my previous posts on ibanking: