Life Returning to Before the Glass-Steagall Act
"Goldman Sachs and Morgan Stanley, the last big independent investment banks on Wall Street, will transform themselves into bank holding companies subject to far greater regulation, the Federal Reserve said Sunday night, a move that fundamentally reshapes an era of high finance that defined the modern Gilded Age."
For the remainder of the article, click HERE. It is definitely worth a read.
So, I ask: how do you think changes at Goldman and Morgan Stanley are going to impact those of us who are going into corporate transactional work? The NYT thinks that the free-wheelin' days are all over for those on Wall Street. What's that going to mean for us?
For the remainder of the article, click HERE. It is definitely worth a read.
So, I ask: how do you think changes at Goldman and Morgan Stanley are going to impact those of us who are going into corporate transactional work? The NYT thinks that the free-wheelin' days are all over for those on Wall Street. What's that going to mean for us?
posted by tj at 9:24 PM
2 Comments:
Maybe it means you'll grow some balls and become litigators.
9:54, I didn't know 10 straight weeks of electronic discovery required balls.
I think the effects are going to be mixed. The NY corporate market will probably contract; top-drawer firms will be fine, but less established firms will feel the pinch.
Outside NY (say, CA) is tough to predict. Private equity and other credit-reliant transactions are going to get much more difficult--but this may just mean more work for lawyers, not less. Also, CA transactions tend to be smaller (say, $100m), which are easier to finance.
Needless to say, the long-awaited counter-cyclical upsurge in bankruptcy may finally occur.
I think the main issue is increased competition and decreased profit margins across the board. Some firms are better situated to overcome that than others.
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