Better Risk Process or Just a Better Outcome This Time?

Since the bloodbath on wall street began almost every major piece in the press has mentioned Goldman as the shining example of great risk management. All these articles imply that other firms do not have practices, people, or a risk management culture that apparently Goldman possesses. However, no one has come out and said what [...]

Private Equity’s Investment Style Drift

Since the leverage loan market closed this summer, financial sponsors (private equity firms) have been pretty much absent from the buy side.  Without debt financing, the sponsors have been unable to LBO new companies.  This has had a profound impact on investment banking divisions since sponsors paid more in fees than other clients due to [...]

Private Equity MAC Attack!

As more and more buyouts break the Material Adverse Clause (MAC) is rightfully getting more and more attention.  Back in 2001 when the tech bubble burst and many buyouts starting breaking many sponsors pressured their bankers to invoke the MAC and kill deals that the sponsor no longer wanted to do (because the multiple didn’t [...]

Xenophobia: Lawmakers, CalPERS & Private Equity

"xenophobic: one unduly fearful of what is foreign and especially of people of foreign origin"
There was much hand wringing and scowling in congress when sovereign wealth funds descended upon struggling U.S. financial firms with cash to mend tattered balance sheets.  Many congressman made arguments reminiscent of arguments made against Japanese investments in U.S. real estate [...]

Investment Bank Regulation Is Changed Forever

This morning in the New York Times, Andrew Ross Sorkin draws attention to the the fact that the Fed was calling the shots behind the Bear Stearns "bailout."  This point was obvious last week.  Just because the price moved from $2 to $10 and there is speculation about whether or not the Fed set the [...]

Book Review - Blue Blood & Mutiny

Blue Blood & Mutiny: The Fight for the Soul of Morgan Stanley by Patricia Beard is one of the best pieces of business history The Prince has read in the last two years.  Combine this book with the tome that is House of Morgan and you will possess a pretty firm grasp of Morgan Stanley’s [...]

Parting Words of Advice on Interviews

The Prince has recently been getting lots of questions from aspiring bankers asking something like this.
"I have studied the vault guides, read IBankingFAQ, read Mergers and Inquisitions, read the WetFeet guides, read your posts, done practice interviews, perfected my resume, taken all the finance courses my school offers and read books about the firms I [...]

What are the Aims of Future Fed Rate Cuts?

What are the aims of future federal reserve rate cuts?  The Prince agrees with many bloggers out there that believe the problems in the market are not being caused by interest rates that are too high.  If we are already in a recession, why not just let it come?  Let the business cycle run its [...]

The Prince’s Weekend Audience

"Fed Puts out Bear Stearns Fire" - Wall Street Greek - Nice analysis of events today

 
 
 
 
 
 
 
 
 
"Fortress Bails Out Jacko" - Dealbreaker - Michael Jackson never fails to entertain
"Housekeeping" - Going Private - Reflections on GP’s 2006 and 2007 work
"CDS Clearing" & "Back to Basics: First to Default Swap" - Alea - CDS clearing is [...]

The Latest Sign of Pressure On the Consumer

"Leaning on outside mortgage brokers for home-equity business was "one of the biggest mistakes we’ve made."  Those loans have performed worse than home-equity loans generated by J.P. Morgan." -Charles Scharf, head of J.P. Morgan’s retail business.
The Prince, like many financial bloggers, has followed the plight of the increasingly burdened  U.S. consumer for some time. (See [...]