What does it all mean?

After pulling the biggest fleecing on the world in at least a decade and now under significant Congressional scrutiny and shareholder proposals to finally limit compensation, the bulge bracket firms will all go private. KKR and the rest of the PE players are just waiting for the opportunity. It’s just a matter of re-pricing the debt, limiting exposure to CDO/CDSs, and of course, wiping out the current equity. Whatever legislative and tax hurdles exist that prevent private equity from owning these firms will be removed as well.

Not really that earth-shaking a realization actually.

Uncategorized Compensation, PE

It’s nice to see there’s finally a little outrage somewhere about the compensation on Wall St. Pay hasn’t been reflective of performance for years. Any MBA that paid attention could tell you that.

But, after reading this article on Bloomberg.com, I’ve come to a stark realization.

The finance industry around the globe, largely in its efforts to enrich the top 100-200,000 employees at the banks, hedge funds, PE shops, what-have-you, has essentially impoverished the rest of the world.

Chew on that one and tell me what you think.

PS. If you had any designs on getting rich in finance, that ship has most appropriately sunk.

Uncategorized Compensation