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When need to I apply for an analyst job at a big investment bank like Goldman Sachs or Lehman Brothers?

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Question by Michael A: When need to I apply for an analyst job at a large investment bank like Goldman Sachs or Lehman Brothers?
I am a recent graduate from the University of Michigan with a dual main in Political Science and Philosophy. I had a GPA of 3.86 general and higher in my two majors. I held a steady job throughout college, operating nearly complete time plus college and, in my senior year, an internship at a regional public defender’s workplace. After college I took a job at a huge DC law firm, but now I am not as sure as I was that law is for me. Portion of what we do here is working with big banks right after hunting at some of that, it genuinely interests me.

I have the operate ethic to survive at a large financial institution, but I need to have to stay right here through the spring. I would like then to move to NY and get a job at a huge bank, but I need to know when I need to apply for those positions. I just bought some books about Wall St. so I can discover far more about the market. I require to study those & enhance my financial expertise ahead of I’d want to go into an interview.

When should I apply? Any other ideas for me? Thnx

Best answer:

Answer by Kerry F
Many of these firms employ seniors in college in the fall who will start off their positions the subsequent summer. However, for individuals who have been in the workforce for even a short period of time, they have a distinct recruiting schedule.

If I were you, I would speak to your college profession center and see if they have any contacts at these firms – if they have recruited at your campus, or if there are alums from your school who perform there, you ought to be in a position to make a get in touch with. If so, it is best to try to get your foot in the door that way rather than blindly applying by means of the website.

That being said, I am in college recruiting, and both Goldman and Lehman have drastically cut their hiring for the year, so it might be tough going for a although…

Ideal of luck to you!

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what is the cause of lehman brother’s financial trouble?

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Question by Lauren L: what is the cause of lehman brother’s financial trouble?
what decisions did Lehman Brothers, Bear Stearn’s and Merrill Lynch make that led them to financial trouble?

Best answer:

Answer by HJ Bear
Somewhat applicable to the industry as a whole
1) thin capital base to start
2) investments in alt-a mortgage loans and commercial real estate soured. in better times, they made good money buying assets and reselling for a profit; but the music stopped. they were also “hung” with a lot of bad corporate bridge loans.
3) financed themselves very aggressively with repo loans from other financial institutions which could get called quickly
4) the investment banks attempted to hedge some of their sub-prime and securitization risk with third parties (such as MBIA, SCA) who lost their AAA credit rating due to sub-prime crisis
5) underwriting profits came to a halt

More specific to Lehman
6) they did not raise capital (dilutive to current shareholders) and tried to ride out storm. Even when they were close to the abyss, they were high-handed when the Korean Development Bank was considering an investment
7) they lost credibility because they were seen hiding the ball
8) short sellers may have exacerbated the perceptual issues. the ban on certain types of short selling had been lifted a week before they blew up.
9)The recent conservatorship of FNMA and Freddie may have destabilized access to funding. The form of rescue by the Treasury inadvertently chilled the potential for other financial institutions to tap the equity markets
10) The US Treasury Dept and Fed Reserve, stung by criticism about their handling of Bear Stearns, took a tough line on aiding Lehman. Their desire to administer tough love to the capital markets backfired when none of the rescuers stepped up to the plate.

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Q&A: Lehman Brothers investment job?

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Question by IvyLeagueBch: Lehman Brothers investment job?
I am currently applying for an internship at Lehman Brothers. I’m not sure what the difference is between “capital markets” and “securitization banking” and “investment banking.”

Any info on that (Yes, I realize I should know the difference, but this is an internship…so I presume training.)

Best answer:

Answer by frank m
They are all part of the same machine. The Capital Markets portion of the bank raises money for firms, and in this case it is likely all debt-based capital; it refers to the sales (call mutual/hedge/pension funds and sell them bonds), trading (price bonds), research/strategy (analyze markets), and banking groups (work with issuers of bonds and structure bonds) that cover that process. Capital Markets generally includes Investment Banking, which at most banks includes securitization banking. Investment Bankers can do anything from work with Toyota to help it raise money to build more cars, to structure the bonds that Toyota is selling to investors in a way that will get the most money for Toyota (and the banker, of course). Securitization Banking is focused on MBS/ABS/CMBS bonds, which derive their cash flows from a pool of assets (for instance car loans originated by Toyota Finance) rather than Corporate Bonds that derive cash flows from the revenue the corporation earns while doing business (i.e. revenue Toyota earns from selling cars). Securitization is definitely where you want to be – it is where all of the real money is flowing around, but the general public is completely unfamiliar with it. CDOs and especially CRE CDOs (Commercial Real Estate Collateralised Debt Obligations) are going to be particularly hot in 2007, although I don’t know about going with them over the long-term. Some Consumer ABS such as Auto Loans/Leases and residential mortgages (especially subprime or HEL) will likely be very interesting this year because both of those markets will likely have the greatest hardships (and you don’t care if they don’t do great since you’re not getting a significant bonus at this point, but you’ll probably have an opportunity to learn a lot). If I could start over, I’d start in structuring, there will be (and already is) big demand in new markets for folks who have some structuring experience to segue into trading, banking, even origination. But I’d also like to start over in Sales – you’re forced to know a little about everything, and all of my co-workers in sales make big coin (they get handed accounts, and get paid whether the trade makes money or not – you can’t beat that). I’ll stop here, but if you want more feel free to send me a message under my profile – if you haven’t interviewed yet, I’ll shoot you some recent Lehman research so you’ll have some good questions to ask.

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