The New Technology Investment Banks

from the aftermath-of-the-four-horseman dept

During the boom years in Silicon Valley, there were the big San Francisco investment banks who helped fuel it all. They got most of the credit for recognizing the so-called "potential" of the dot com era before the folks across the country on Wall Street figured it out. They also added to the hyping up of the times with many of the questionable banking activities that are causing many disgraced (though, wealthy) former investment bankers and analysts to face jail time. Now that the big SF banks have shut down or had their remnants swallowed up by others, a new generation of SF technology investment banks are showing up - and trying to distance themselves from the past. Their analysts (get this) are actually analysts - researching the stock on what they believe are its merits. They're not paid based on how much banking business they bring in. Instead, they're paid on actual performance in picking stocks. Also, the banks are actually looking for people who really understand the technology their covering in hiring analysts. Of course, it's easy to act like this when the market isn't doing much. If things go into overdrive again, it will be interesting to see how these "new" investment banks react, and if they can keep their separate parts working apart - or if the money temptation will make them seek "creative" ways of breaking down the wall between the two sides.

Add Your Comment

Have a Techdirt Account? Sign in now. Want one? Register here

Subscribe to the Techdirt Daily newsletter

Comment Options:

  • Use markdown. Use plain text.
  • Remember name/email/url (set a cookie)

Follow Techdirt
Techdirt Gear
Shop Now: I Invented Email
Report this ad  |  Hide Techdirt ads
Essential Reading
Techdirt Deals
Report this ad  |  Hide Techdirt ads
Techdirt Insider Chat
Report this ad  |  Hide Techdirt ads
Recent Stories
Report this ad  |  Hide Techdirt ads


Email This

This feature is only available to registered users. Register or sign in to use it.