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Ariel Investments' Charles Bobrinskoy Discusses Future of Investment Banks

December 25, 2012 | About:
Dheeraj Grover

Dheeraj Grover

18 followers
Charles Bobrinskoy, vice chairman of value investing firm, Ariel Investments, discusses future course for investment banks like Morgan Stanley and Goldman Sachs as they try to shrink, in light of the drop in revenue and trading. He is commenting in view of the recent announcement from Morgan Stanley to cut jobs.

SUMMARY:

-- He thinks that the number of investment banks will be smaller going forward, given the new regulatory environment in which they will be operating.

-- He thinks that is a good strategy as that will free up cash to be returned to shareholders.

-- Fixed income business has grown by leaps and bounds in the last decade but will be a much smaller business going forward at all the investment banks.

-- It is a very tough operating environment for investment banking as people sit on tons of cash and refuse to trade.

-- Still, financials are very cheap at this point. Some of these stocks are trading at all time lows.

Credit and Source: Bloomberg

Here is the video:



About the author:

Dheeraj Grover
I am an individual investor with deep interest in the field of value investing. My ideas and thinking is inspired by highly respected value investors like Ben Graham, Warren Buffett, Walter Schloss, Bill Ruane and Tweedy Browne

Rating: 2.9/5 (10 votes)

Comments

vgm
Vgm - 1 year ago
Be careful! This video is about a year old!

dheerajgrover
Dheerajgrover - 1 year ago
Vgm thanks for pointing that out.

Please leave your comment:


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