The New Technology Investment Banks

from the aftermath-of-the-four-horseman dept

During the boom years in Silicon Valley, there were the big San Francisco investment banks who helped fuel it all. They got most of the credit for recognizing the so-called "potential" of the dot com era before the folks across the country on Wall Street figured it out. They also added to the hyping up of the times with many of the questionable banking activities that are causing many disgraced (though, wealthy) former investment bankers and analysts to face jail time. Now that the big SF banks have shut down or had their remnants swallowed up by others, a new generation of SF technology investment banks are showing up - and trying to distance themselves from the past. Their analysts (get this) are actually analysts - researching the stock on what they believe are its merits. They're not paid based on how much banking business they bring in. Instead, they're paid on actual performance in picking stocks. Also, the banks are actually looking for people who really understand the technology their covering in hiring analysts. Of course, it's easy to act like this when the market isn't doing much. If things go into overdrive again, it will be interesting to see how these "new" investment banks react, and if they can keep their separate parts working apart - or if the money temptation will make them seek "creative" ways of breaking down the wall between the two sides.