The past few days have seen activity on the investment banking front like no other and all of this over the weekend! Let’s recount the headlines reported by the The Wall Street Journal since Thursday…
Lehman in Sale Talks with Potential Suitors, Including Bank of America – “…potential buyers remain wary about plugging holes in Lehman’s balance sheet…”
New York Fed Holds Emergency Meeting on Lehman Brothers – “…The Federal Reserve Bank of New York held an emergency meeting Friday night with top Wall Street executives…”
Lehman Talks at New York Fed End for the Day – “…a clean sale of the entire firm would be too difficult to execute…”
Barclays Is Walking Away From Lehman Deal – “The fate of Lehman Brothers darkened early Sunday afternoon with Barclays, the sole remaining bidder… walking away from a transaction…”
Bank of America and Merrill Lynch are in merger discussions – “…talks come amid a Wall Street scramble to sort out a potential liquidation of Lehman Brothers…”
Never in the history of investment banking has one weekend produced such potentially market changing activity. We’re talking about some of the biggest of the bulge – Merrill Lynch, Barclays and Lehman Bros.
This week should be a wild and woolly market, not just for the financials. We will continue to monitor the investment banking job market and keep a close eye on the bulge bracket as well as the ripple effect on the boutiques. And we expect that the talent hungry hedge funds will continue to cherry pick the most valuable players.