The hottest Investment Banking Substack posts right now

Goldman Sachs has faced serious scandals, but it often escapes major consequences, showing how reputation risk doesn’t seem to affect them much. They just pay fines and move on with business.
In the 1MDB scandal, Goldman Sachs was involved in serious financial crimes that defrauded Malaysia out of billions, but despite this, their overall reputation remains largely intact.
The way Goldman Sachs operates highlights a troubling trend in finance where big companies can act without accountability, suggesting that they believe they can always buy their way out of trouble.

Moving the NYSE Chicago to Texas isn't a big deal in finance. It won't change how trading really works since most of it happens off the main exchanges anyway.
Chicago's financial industry is struggling, with fewer major banks and investment firms. Many professionals believe Dallas is becoming a better place for finance careers.
Texas is improving its business environment with low taxes and better competition for financial firms. This may help cities like Dallas attract more businesses and talent.

M&A advisory is extremely lucrative, with firms and boutique bankers earning huge fees on big deals and the industry seeing record revenues and backlogs.
The job is high‑pressure and time‑consuming, with bankers routinely working holidays and long hours to win and manage transactions.
Pay is mostly success‑based—a percentage of deal value—so advisors do a lot of unpaid work hoping a few big wins will cover their costs, and appointments often hinge on personal relationships which can cause disputes.

Finance plays a crucial role in the space industry, with the need for understanding how big finance impacts space startups, from funding to strategic decisions.
The field of finance exists to facilitate the flow of capital between households with savings and companies needing funding, focusing on growth and return on investment.
Different investor types have varying expectations for returns, so it's important to align funding sources with the goals and growth plans of a startup to secure sustainable growth.

Swiss government forced UBS and Credit Suisse merger without shareholder consent
UBS expects the merger to create a powerful asset management entity with cost-cutting plans
The combined entity will focus on sustainable value for shareholders and strategic growth

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Lehman's failure might have been necessary for Wall Street to recover. Allowing it to collapse helped the government take bigger steps to save other companies like AIG.
Wall Street hasn't really changed after the crisis. They've gone back to risky practices and high bonuses, as if nothing happened.
There’s a pattern of forgetting past mistakes on Wall Street. People there focus more on making deals than learning from what went wrong before.

Housing prices rose dramatically from 2002 to 2007, which contributed to a risky financial environment. Many people thought these prices would keep going up, leading to poor investment decisions.
Mortgage backed securities were created from bundled mortgages, making them complex and risky. Investors misjudged the risk involved, especially in the riskier parts of these securities.
When housing prices started to drop, it caused big losses for financial firms holding these risky investments. This set off a chain reaction of liquidity issues and major market failures.

Goldman Sachs faced an indictment over their Abacus deal, which lost billions during the housing crisis. This case highlights issues of selective prosecution and the role of investment banks in selling risky products.
The SEC argued that Goldman misled investors by not revealing that a hedge fund was selling the securities. However, it's debated whether the identity of the seller really mattered to the buyers.
Goldman's actions might have seemed unprofessional, but exploiting information gaps in trading isn’t illegal. It's important to recognize that all trading involves risks, and buyers should research before purchasing securities.

Rogue trading happens when a trader breaks their company's rules, which can lead to huge financial losses or gains. It's not just about losing money; making risky trades can also be considered rogue trading.
There are several reasons why people engage in rogue trading, like feeling addicted to trading or wanting to hit a big payday. Many traders take bigger risks when using money that isn't theirs, especially after experiencing losses.
To prevent rogue trading, companies need to have better risk management systems and only hire cautious traders. Monitoring must be improved and there should be clear consequences for traders who take reckless risks.

Investment banks often prioritize their own interests over those of their clients. This creates a relationship where both sides can be exploitative.
The focus on deal-making and specialization in finance can lead to a lack of understanding about the broader impacts of decisions. Narrow expertise often overshadows the need for a bigger picture perspective.
For investment banks to be more client-focused, they should hire generalists, tie compensation to long-term relationships, and be more selective about their clients.