Archive for May, 2009

Where Will Investment Bankers Be in the Future?

After all the recent turmoil in industry and the collapse of many banks, it’s a question that many people are now asking – and with good reason. The truth is, no one knows exactly what’s in store for the future of the industry – but here’s what we can say for now.

Any industry is driven by demand. The demand for capital, and for buying and selling other companies will always be there – so investment banks themselves will continue to exist into the future.

Bonuses will be way down over levels in recent years, however. 2006-2007 will not return for a long time, and in the near future we’re more likely to see 2001 levels for bonus payments.

The oldest and most well-known investment banks – Goldman Sachs and Morgan Stanley – will also be greatly affected. Since they are now bank holding companies, they’ll be subject to increased regulation and will no longer be able to pay stratospheric bonuses.

Bonuses at GS and MS will also be down – but mostly because the economy is so bad, not because they are bank holding companies. And that’s true across the industry – bonus numbers everywhere will be down sharply this year.

Middle-market and boutique firms, on the other hand, will start to thrive. Maybe not “thrive,” but more boutiques will be formed by ex-bulge bracket bankers who are looking for more freedom and advancement opportunities. There has already been quite an exodus of talent from top Wall Street banks into tiny startup advisory and investment firms.

Is there anything in finance that’s actually “safe” right now? No, not really. Plenty of banks, hedge funds, and private equity firms have failed.

Is anyone still hiring? Yes – in fact, some firms are actually expanding. Funds of funds are still investing and hiring, and anything restructuring-related always needs more heads in a downturn. Hybrid consulting firms/banks have also been more popular lately.

When will we hit the bottom? It may not happen for awhile. Increased regulation also means that even when things recover, smaller firms may be better positioned to rise to the top.

Most importantly, how can you break into the industry in this environment? Aim small (boutiques), go East (Far East and Middle East), and think outside pure investment banking – think about hybrid consulting firms, and anything with a restructuring, turnaround, or even healthcare focus. Those are areas that are still hiring people, because they’re relatively counter-cyclical, or at least “recession-neutral.”

Investment banking will change over time, but it will never go away as long as the demand is there. It may be tough to get into the industry right now, but it’s do-able if you have a lot of persistence and you focus on the right places.

Popularity: 12% [?]

Tags: About Money, boutique investment banks, Careers, finance, Goldman Sachs, hedge funds, investment banking, jobs, money, Morgan Stanley, private equity, recruiting, Wall Street
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PrimaCard – Prepaid Credit Card

A prepaid credit card is a convenience because it is an alternative to carrying cash or writing checks. The PrimaCard gives easy purchase transactions, it can be used to make free long distance phone calls, withdraw cash from ATM’s, transfer money, and pay bills.

When you deposit funds to your card it is then ready to use just like cash. You can reload it at any time and for any amount.

It can be used wherever MasterCard is accepted, including online retailers and merchants. You won’t have the hassle of writing checks or having to carry cash to cover your expenses.

Phone Calls

One of the best features is that you can use it to place free national and international long distance phone calls. There will never be a need to worry about carrying a phone card again.

When you reload it by depositing cash to the account, you earn free phone calling value. All it takes to start using your accumulated phone time is a call to our toll-free number. You then dial your long distance number and talk to your family and friends.

Reloads

You can arrange with your employer to have your paycheck deposited directly into your account. No more trying to get to your bank before it closes or waiting in long lines.

Your money will be ready to use for bills, groceries, or other necessities when you need it. You can also reload at any Green Dot Network location. The Green Dot Network includes cash locations and well known retailers, such as CVS, Walgreens and Rite-Aid.

Cash from ATM’s

If you prefer to use cash for your expenses, you can use one of the thousands of ATM’s. You will need to use a Personal Identification Number (PIN) for withdrawals.

Bill Paying

If your creditor or utility service accepts MasterCard payments, you can simply call the business and pay over the phone. Another option is to call the toll-free customer service telephone number and make payments that way. You can also make payments from your account online.

Cash Transfers

If you need to send family members cash your account can be connected to additional cards, and you can transfer funds at any time. This is a great idea if you have a college student far from home or a family member who is traveling. You can rest assured they will have access to cash immediately.

Popularity: 14% [?]

Tags: About Money, advice, business, business and finance, consumer, credit, credit cards, debt, e-commerce, ecommerce, finance, money, personal finance, product reviews, self help
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