Just when you thought it was safe to put your money back in the market (and, say, buy a share or two of a global bank or social network), the vampire squids of Wall Street strike again.
And this time, it's not Lloyd Blankfein and gang doing the stinging, but Jamie Dimon and his London whale, as well as James Gorman's high tech underwriting team. It's enough to make even the thickest-skinned investor—and would-be banker—stay on the beach.
Yes, it's been yet another horrific couple of weeks for the reputation of Wall Street banks. And, surprisingly, other than passing mentions of its co-leading Facebook's IPO, Goldman Sachs, the media's go-to punching bag when talking about Wall Street misdeeds for the past few years, has been conspicuously left out of headlines.
Taking its place have been J.P. Morgan and Morgan Stanley.
J.P. Morgan, prior to the billions in scandalous trading losses it announced a couple weeks ago, was largely thought to be running a rather clean operation (at least, as clean as one on Wall Street can be these days). Meanwhile, Morgan Stanley, which appeared to be making some strides by landing the lead underwriting gig on the most highly anticipated IPO in history, now appears to have botched that opportunity—and the feds are on its tail for possible violations in its handling of the Facebook offering.
Which must have the folks over at Goldman Sachs smiling from ear to bloodsucking ear—especially its folks who head up the bank's recruiting efforts*.
What perfect timing, they must be thinking, for Goldman's main competitors to commit such blunders.
You see, in just a few weeks, by the subway load, summer interns will start piling into the halls of Goldman Sachs, J.P. Morgan, Morgan Stanley, and other top Wall Street banks. And the summers are, if anything, twelve-week sales pitches—for interns as well as for banks. That is, interns are given a chance to show they have the guts to work on Wall Street full time, and banks are given a chance to lure young and hungry undergrads and MBAs into its ranks, attempting to sell the supposed fact that their HQ is the best place to begin a career on Wall Street.
To that end, no longer will J.P. Morgan and Morgan Stanley recruiters will be able to play the you-don't-want-to-work-for-the-squid card, now do you? Because these two banks are now swimming in similar hot waters as thier fellow squid, Goldman Sachs.
*Rumor is, though, Goldman recruiters (and other execs at the bank) are not smiling upon, and, in fact, are frowning upon and canning its analysts who’ve secured buy-side jobs before their two-year analyst positions are up.
Facebook I.P.O. Raises Regulatory Concerns (DealBook)
Here's The Inside Story Of What Happened On The Facebook IPO (Business Insider)
Goldman Sachs Does Not Look Kindly Upon First Year Analysts Who Plan In Advance (Dealbreaker)