Business as Usual: Sex, Drugs and Derivatives
For the past several years I have been mourning the end of an era on Wall Street. But it did not disappear, it just moved from the equity BuySide/SellSide to Credit derivatives:
``It’s all about relationships,’’ said Andy Nybo, a senior analyst at Tabb Group in New York, who analyzes market structures and exchanges. ``It’s more than a phone call. You invite him to a Yankees game. It’s tight-knit and built on entertainment and social interaction.’’
That’s not unusual in the world of derivatives brokers, according to Willy Stemp, 52, a consultant at London-based Mark to Market Plc. Some entertain traders every night of the week in the hope of winning a client, said Stemp, a former broker.
``Brokers aren’t looking for highly technical Ph.D.s and MBAs,’’ Stemp said. ``They’re looking for personality people, with a decent education and sharp wits.’’ Bloomberg
I thought Spitzer put an end to the most egregious behavior years ago, but apparently not.
If you want sex, drugs and derivatives, you will have to read the article below. But William Cohan’s comments are fit to print:
``It’s astounding that people get paid that much to be intermediaries,’’ said William Cohan, a former investment banker with Lazard Ltd. in New York and now an author of books on Wall Street.
Shady stuff.
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Credit Seizure? $6 Million Pay Turns on Relationships
Bloomberg
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