–Tanuja Randery is the CEO of trading services firm MarketPrizm. The opinions expressed are her own.–
The Great Debate UK
Wall Street is once again aflutter with talk of impending job cuts. But jittery traders may have a few months more grace before the knives come out. With trading revenue falling, the pressure is growing for investment banks to lay off staff. But executives are still debating whether the current slump is a blip. Nobody wants to slash ranks right before a turnaround. The summer could be safer than many think.
Goldman Sachs' old-school Facebook deal brings a new set of challenges. The bank is raising up to $1.5 billion from clients to invest in the social network while putting in $450 million itself. Like Morgan Stanley's reported deal with online coupon service Groupon, it looks like classic merchant banking. With hot firms in the driver's seat, however, the banks could find themselves in for a wild ride.
Goldman Sachs will be in the dock on Tuesday. Not in court, but in front of a U.S. Senate committee, where seven current and former employees, including boss Lloyd Blankfein and the self-styled Fabulous Fabrice Tourre, will appear. The danger is that the hearing becomes consumed with grandstanding and headline-grabbing hectoring. For past missteps to be avoided, more thoughtful probing is called for. Here are three possible icebreakers.
from The Great Debate:
-- Ed Mierzwinski is the longtime consumer program director of U.S. PIRG, the federation of state Public Interest Research Groups. U.S. PIRG is a founding member of Americans for Financial Reform, an unprecedented coalition of over 250 labor, senior, civil rights, community and consumer organizations. --