After BoA's IB tanked in Q3, '07 Ken uttered the infamous "I never say never, but I've had all the fun I can stand in investment banking at the moment." Quite a turnaround then...
If I was a shareholder, I would view the IB as a deadweight to the cash cows of the commercial operation. Even if we say "what's done is done", on a going forward basis the outlook is still pretty grim as deals are not happening, very few IPOs coming to market, trading flow is at all time lows and prop trading is a complete ghost town. Lewis gave an implicit backing of the combined IB/CB model with the ML purchase but since then has done a shitty job of communicating his vision for why or his plan for how.
Sphere: Related Content
Print this post