Layman Bothers
That my mother should mention on the phone 'some companies in America are falling' truly establishes the greatest financial crisis US has seen since the Great Depression of 1929! I have been reading the views, reactions, anguishes across blogdom so thought of contributing with my tuppence. After all thats what Lehman is worth now? Not really...
I remember reading the dramatic news articles during 11-16 Sept how the 62 yr old Chairman & CEO of Lehman Brothers Richard Fuld had not stepped out of his office on the 31st floor since a couple of days, desperately trying to save Lehman. He was trying to find a buyer to save the company he joined in 1960's from going belly up. I recall going to bed with my head trying to visualize the heat and tension on that 31st floor of Lehman's HQ. Next day, I got the most astonishing news of Merill Lynch bought out by Bank of America, and I was like where did that come from?? That was indeed a nasty surprise. More so coz I have had the fortune of visiting Merill's office in Dubai, and the experience had left me absolutely awestruck. And the same day, Lehman filed for Chapter 11. As some Hedge Fund owner remarked, 'In my 30 yrs I have never seen such extraordinary events'.
Now that the intial sting of the events have subsided, I find the fallout pretty amusing. Some people are deriving sadistic pleasure.. 'Those bloody high paying I-Bankers, good ego bashing for them'. The most amusing was Mr. Manmohan Singh's cabinet committee meeting wherein his FM gave a presentation (slides and all haha) to the UPA members about the global financial crisis and what it means to India. As expected, no minister raised any question!!. Then there are the reactions from B school aspirants. No guesses what the Group Discussion topics are going to be during 08-09. Then from the men on ground.. I asked my friend who is an I Banker in India, hows the sentiment. "Very very bad.. Lehman resumes are floating all around". In fact J.P.Morgan had organized a walk in recruitment drive for only Lehman employees last week.
My take - Well, although I myself am overwhelmed with the magnitude of destruction, if I may call it thus, some reactions like that of B School aspirants shying away from I Banking jobs are unfounded. The herd will now head towards private equity and management consulting jobs, which fall in that order of payscales. This is not what I would really advise any one. Lets realize that Investment Banking per se has not gone bonkers. The core practices of both Bear Stearns, Lehman Brothers are still very prized businesses.
As an aside, this global turmoil bodes well for management consultancies. Lots of sleep deprived, frantic, confused CEOs means more business for consultants. One man's bane is the other's boon.
I remember reading the dramatic news articles during 11-16 Sept how the 62 yr old Chairman & CEO of Lehman Brothers Richard Fuld had not stepped out of his office on the 31st floor since a couple of days, desperately trying to save Lehman. He was trying to find a buyer to save the company he joined in 1960's from going belly up. I recall going to bed with my head trying to visualize the heat and tension on that 31st floor of Lehman's HQ. Next day, I got the most astonishing news of Merill Lynch bought out by Bank of America, and I was like where did that come from?? That was indeed a nasty surprise. More so coz I have had the fortune of visiting Merill's office in Dubai, and the experience had left me absolutely awestruck. And the same day, Lehman filed for Chapter 11. As some Hedge Fund owner remarked, 'In my 30 yrs I have never seen such extraordinary events'.
Now that the intial sting of the events have subsided, I find the fallout pretty amusing. Some people are deriving sadistic pleasure.. 'Those bloody high paying I-Bankers, good ego bashing for them'. The most amusing was Mr. Manmohan Singh's cabinet committee meeting wherein his FM gave a presentation (slides and all haha) to the UPA members about the global financial crisis and what it means to India. As expected, no minister raised any question!!. Then there are the reactions from B school aspirants. No guesses what the Group Discussion topics are going to be during 08-09. Then from the men on ground.. I asked my friend who is an I Banker in India, hows the sentiment. "Very very bad.. Lehman resumes are floating all around". In fact J.P.Morgan had organized a walk in recruitment drive for only Lehman employees last week.
My take - Well, although I myself am overwhelmed with the magnitude of destruction, if I may call it thus, some reactions like that of B School aspirants shying away from I Banking jobs are unfounded. The herd will now head towards private equity and management consulting jobs, which fall in that order of payscales. This is not what I would really advise any one. Lets realize that Investment Banking per se has not gone bonkers. The core practices of both Bear Stearns, Lehman Brothers are still very prized businesses.
As an aside, this global turmoil bodes well for management consultancies. Lots of sleep deprived, frantic, confused CEOs means more business for consultants. One man's bane is the other's boon.
Labels: Lehman Brothers
2 comments
Rather than the B-scool students shying away from I-banking jobs, I think the scenario is going to be the opposite. There's going to be very little fresh hiring in most banks, especially at the graduate level. Theres a stop on all non-critical hiring in almost every bank today.
I voice your opinion...could never really comprehend the sadistic pleasure people got in seeing i bankers in adversity. ya..they were making a lot of money...so??? its still not a communist world! there is always disparity!
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