The Myth of the Investment Banking Cartel

“Sometimes we will in fact suggest or bring a company a deal idea, but in almost every instance our idea has more to do with How and When to do a transaction, rather than What and Why.”

Am I really going to write a blog post about a blog post about a blog post?

OMG, I think I am.

James Altucher, who I hope never runs out of hilarious anecdotes, wrote a brilliant post this week talking about the time he almost became a tech stock billionaire.  And yesterday, my pal The Epicurean Dealmaker used it as a springboard to pen a great post of his own – one in which the behaviors and motivations of investment bankers are laid bare for all to see.

One of the most interesting bits concerns this myth that investment bankers exert some type of control over their corporate clients.  TED shows us why nothing could be further from the truth…

But if you really want to understand the true nature of power relations between investment banks and their clients, it helps to examine the extreme example of a hot deal or client. Then you see the sordid truth: nervous, sweaty multimillionaires in expensive suits stacked five deep in a waiting room, desperate to get in and pitch for some juicy piece of business every Managing Director needs to win to make his revenue quota. Five, six, or more presentation books from different investment banks, each with exactly the same “ideas,” exactly the same credentials, and exactly nothing to distinguish each from the other other than different bank logos at the foot of every page.

Not only is there competition aplenty to get the deal for your bank, there is also a truism that the best deals out there are the ones where the banker is merely hopping on for the free ride – the upcoming social media bonanzas being the most current examples.  Nice to know that even the Windsor Knot Mafia henchman in the elevator next to you is anxious about his next pitch too.

Click below for both of these awesome posts.


Bar Nothing (The Epicurean Dealmaker)

How I Screwed Yasser Arafat out of 2mm and lost 100mm in the process (Altucher Confidential)

This content, which contains security-related opinions and/or information, is provided for informational purposes only and should not be relied upon in any manner as professional advice, or an endorsement of any practices, products or services. There can be no guarantees or assurances that the views expressed here will be applicable for any particular facts or circumstances, and should not be relied upon in any manner. You should consult your own advisers as to legal, business, tax, and other related matters concerning any investment.

The commentary in this “post” (including any related blog, podcasts, videos, and social media) reflects the personal opinions, viewpoints, and analyses of the Ritholtz Wealth Management employees providing such comments, and should not be regarded the views of Ritholtz Wealth Management LLC. or its respective affiliates or as a description of advisory services provided by Ritholtz Wealth Management or performance returns of any Ritholtz Wealth Management Investments client.

References to any securities or digital assets, or performance data, are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others.

Wealthcast Media, an affiliate of Ritholtz Wealth Management, receives payment from various entities for advertisements in affiliated podcasts, blogs and emails. Inclusion of such advertisements does not constitute or imply endorsement, sponsorship or recommendation thereof, or any affiliation therewith, by the Content Creator or by Ritholtz Wealth Management or any of its employees. Investments in securities involve the risk of loss. For additional advertisement disclaimers see here:

Please see disclosures here.

What's been said:

Discussions found on the web
  1. bitcoin loophole reviews 2020 commented on Sep 28

    … [Trackback]

    […] Find More Information here to that Topic: […]

  2. money looper scam commented on Sep 30

    … [Trackback]

    […] Read More Information here on that Topic: […]

  3. 토토사이트 commented on Oct 16

    … [Trackback]

    […] Information to that Topic: […]

  4. Intelligent automation services commented on Nov 13

    … [Trackback]

    […] There you will find 64263 more Information to that Topic: […]

  5. fake louis vuitton watch commented on Nov 25

    … [Trackback]

    […] Find More Info here to that Topic: […]

  6. cvv shop list commented on Nov 27

    … [Trackback]

    […] Read More on to that Topic: […]

  7. knockoff Bulgari Imitations Watches commented on Dec 08

    … [Trackback]

    […] Read More here to that Topic: […]

  8. faux copy bulgari watches swiss commented on Dec 30

    … [Trackback]

    […] Here you can find 51193 more Information to that Topic: […]

  9. Sony KDL-32W610F manuals commented on Jan 21

    … [Trackback]

    […] Read More Info here to that Topic: […]

  10. E+p T 87 manuals commented on Jan 23

    … [Trackback]

    […] Find More Information here to that Topic: […]

  11. rbc royal bank commented on Jan 28

    … [Trackback]

    […] Find More on that Topic: […]