Investment banking has always been a tight Guild
Reader comment on: New Yorker on Investment Bankers
Submitted by Lyle (United States), Nov 22, 2010 15:23
It walks like a guild and talks like a guild. Agrees albeit indirectly on prices and the like. For example instead of doing IPO's the way they are done, just take bids from anyone who provides assurance that they have the money. Then starting at the top price bid go down the list until the number of shares desired to be sold is reached and that bid is the price the stock is sold at. None of this favoring your buddies stuff that exists today. Note that in this model there would not be a need to pay the vigorish to the investment bank for going public. But the old boys would squelch anyone wanted to do business this way, because it would cut their vigorish.
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