The good old days of Investment Banking

"These days investment bankers are generally seen as egocentric mercenaries whose only loyalty is to their next bonus."

This is the first sentence in a Financial Times article talking about the glory days of Morgan Stanley and the current turmoil in its senior ranks.

I remember when I was in this business. The important thing was to establish a trust and an understanding of the client's business and strategy and develop a long term relationship of trust, advice and service.

On a regular basis, we would say no to a client and advise against deals, if we believed that they were not in the long term interests of their company.

'Bid em up' Bruce Wasserstein started as a lawyer and, when he moved into investment banking, continued on his deal doing path. It seems, that that is where the advisory business has moved to.

Such that a once great advisory firm called Lazard is being IPO'd and will be Wasserstein's greatest deal.

I would love to see those times back when investment banking relationships were not deal based, but were advice based and for the long term.

That would be what would get the old style bankers back into the business. That type of old style, ethical banking is sorely needed!

OAM

Related links:
Morgan Stanley's glory days are gone for good (subscription required)