Getting a job in investment bank is a dream for most of the people who pursue MBA. It was shocking to read the news on Monday morning with the above title.Lehman Brothers and Merrill Lynch two pillars of wall street collapsed in matter of few days. Its estimated around 30000 people will lose their job directly or indirectly.
This is also bad news for Indian IT sector as both firms has outsourced most of their back office operations to them.
Since I follow the all business news and as I work in for a BFS client this news became a matter of concern.I was thinking about the hype to get a job in investment bank and in the end of day you were being thrown out just because of few bad decisions made by the management of the company.I have heard stories from my friends who used to slog 12 to 16 hours a day working for investment banks ,now I wonder is it really worth enough to do that job.
Lets wait and see the restructuring of Financial companies and the corresponding impact felt around the globe!
2 comments:
Sriram,
Its opening doors for risk mangers. More room for people who think about managing risk. I love it when it makes people to think (though the price tag in billions ending on tax payers). No more routine or following market. Lehman failed because of its CEO greed. Good thing Merrill did not follow Lehman. Time for consolidation. One major thing i am afraid of is BOA (who bought Merrill) and JP Morgan (bought bear & sterns, in market for merger with Wachovia )has too much under their wings which i am sure will be spin off in future
yea Diana(good to know you found my secret blog ;)) Lehman failed mainly b use of it CEO, read latest news that both JP Morgan n Goldman Sachs will no longer called as investment bank rather bank holding companies.There will be some consolidation for sure.
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