Comments on: When bankers turn honest A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 By: Benedick Sun, 30 Aug 2009 00:38:19 +0000 For TED is revealed; I yield

Why pay? Perhaps because, for a moment, at least, they believe.

The first thing to get in your head is that every single
Girl can be caught – and that you’ll catch her if
You set your toils right…

By: flippant Sat, 29 Aug 2009 05:04:32 +0000 This is nothing more than dinner-party conversation. Wine du jour and rich desserts. Who would say the same the next day?

No one.

By: The Epicurean Dealmaker Sat, 29 Aug 2009 02:43:22 +0000 Nay, sweet Benedick, you mistake me. I impost not: tis truly me.

I am well aware of the many reasons I and my peers use to justify our fees, which include but are not limited to those you recite. What continues to puzzle me is why our clients continue to *pay* what we ask. Surely you can see that is a different question.

We do not talk of the *value* of investment banking services in this fair assembly; we puzzle our brains over their *price.*

By: Benedick Sat, 29 Aug 2009 00:24:47 +0000 Aha, a TED impostor!

TED would say: How quickly said client forgets the years of courting leading to engagement; the corporate development activities, the introductions and the entertainment. And what of the risk? The opportunity cost of time spent only to see a competitor win; or worse to lose because of a perceived conflict. Yet why pay?

But love is blind and lovers cannot see
The pretty follies that themselves commit;
For if they could, Cupid himself would blush
To see me thus transformed to a boy.

By: Anon Fri, 28 Aug 2009 22:48:07 +0000 @TED” Thoughts, anyone?

Because the banks’ owner and clients are being played by the bank employees who are constantly threatening to move across the street and are thus busily competing up the banks’ costs?

By: The Epicurean Dealmaker Fri, 28 Aug 2009 21:52:10 +0000 I have been hearing the same complaint, directly and indirectly, from investment banking clients for years. The fact–or the belief–that investment bankers “overcharge” for their services is not new.

What is interesting is that this condition has not changed, notwithstanding years of complaints and repeated predictions of the imminent demise of investment banks’ “excessive profits,” usually by firms who were trying to disintermediate them.

I agree with Pickering that the services are largely commoditized, and that there is fierce competition among the market participants. The real mystery is why fees have not dropped. Either the market for investment banking services is not efficient–e.g., is characterized by large barriers to entry–the fees we charge on average are in fact “fair,” or something else is going on.

I am open to suggestions. Thoughts, anyone?

By: Owe Jessen Fri, 28 Aug 2009 21:26:46 +0000 What’s an increase in honesty worth as long as it’s not accompanied by a change in practices?

By: otto Fri, 28 Aug 2009 19:35:38 +0000 It’s that pleasantly naive thing you have that keeps me coming back to read.