Banks Becoming Worthless to Society
Much of what investment bankers do is socially worthless. The New Yorker's John Cassidy says banks modern iteration is far removed from its historical role of funding business.
Wall Street’s role in financing new businesses is a small portion of what it does. The market for initial public offerings of stock by U.S. companies never fully recovered from the tech bust. During the third quarter of 2010, just thirty-three U.S. companies went public, and they raised a paltry five billion dollars. Most people on Wall Street aren’t finding the next Apple or promoting a green rival to Exxon. They are buying and selling securities that are tied to existing firms and capital projects, or to something less concrete, such as the price of a stock or the level of an exchange rate.
When adults are challenged to behave like adults, by a child, they can go in one of two directions.