This City Gravy Train Must Hit the Buffers ; a Senior Figure has Warned That Private Equity Is Recklessly Overstretched. So How Long Can Bankers Pocket Record Bonuses?
Evening Standard - London › December 19, 2006
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Summary
AFTER I'd given a talk at my old college as part of a careers seminar, a student collared me in the bar. He wanted to know what trainee journalists earn. When I told him, he smirked and quoted what Goldman Sachs pays its graduates. When I spluttered that I was speaking about journalism and Goldman is an investment bank, he looked nonplussed and wandered off.
We live in a mad age, where a group of people are making vast sums - and we can only stand and stare. It's dangerous too. Jon Moulton, founder of Alchemy Partners, one of the shrewdest figures in the private-equity industry, has warned of a possible tenfold rise in corporate defaults - most of them caused by reckless bank lending.See the full content of this document
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This City Gravy Train Must Hit the Buffers ; a Senior Figure has Warned That Private Equity Is Recklessly Overstretched. So How Long Can Bankers Pocket Record Bonuses?
"The debt markets have been very loose and low on credit standards," he said. Credit-rating agency Standard Poor's is warning that debt levels on private-equity deals are four times above what would be regarded as safe.
Sir John Gieve, the Bank of England deputy governor for financial st...See the full content of this document
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