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I-banking and trading divisions are getting gutted. One would think there are money to be made there and most banks aren’t following suit. Sounds like leaders

by pcurve 7y ago

I-banking and trading divisions are getting gutted. One would think there are money to be made there and most banks aren’t following suit. Sounds like leadership failure to me.

pgeorgi 7y ago
There's money to be made there, and they made a lot of money, so much that the company stopped caring about the other divisions - until they didn't, and it started to cost them tons of money in lawsuits. Yes, a different management approach might have avoided the lawsuits and everything, but apparently this level of risk taking is not in the DNA of the bank and so they stop doing that. In my opinion restricting themselves to the part of the business they understand to get back to a clean slate is one of the smartest ideas they had in the last ~20 years.