As the industry becomes more regulated and less lucrative, the most talented bankers and traders may defect to the more entrepreneurial and financially rewarding world of boutique investment banks, private equity firms and hedge funds. Were that to happen, private equity groups including Blackstone and Kohlberg Kravis Roberts, independent investment banks such as Lazard and Rothschild and hedge funds like Citadel could gain. Seasoned investment bankers dismiss this view, arguing that their industry has a chameleon-like ability to adapt to changing circumstances. But even the most ardent proponents of this theory acknowledge that, given the severity of the current plight, such a transformation will take time. "Other generations of bankers will be allowed to make the same mistakes I did; of that I am sure," says a veteran banker at a European bank. "The only question is how long it will take."
Seasoned investment bankers dismiss this view, arguing that their industry has a chameleon-like ability to adapt to changing circumstances. But even the most ardent proponents of this theory acknowledge that, given the severity of the current plight, such a transformation will take time. "Other generations of bankers will be allowed to make the same mistakes I did; of that I am sure," says a veteran banker at a European bank. "The only question is how long it will take."
http://www.ft.com/cms/s/0/fa25105a-8c0a-11dd-8a4c-0000779fd18c.html In the long run, we're all dead. John Maynard Keynes
