The Power of the Old Boys' Banking Network

The former UBS (UBS) president has made interesting remarks about his old firm, but this advice should be extended to all banks: separate the investment bank from the commercial and private bank. He also says, put a banker, not a lawyer, in charge.

Why is that only after a banker leaves to head up an advisory firm does he come clean? It’s because there is a Code Red of sorts that dictates behavior among bankers. They play the game according to their own rules or they are ostracized.

It is a fact of life among senior bankers that your peers are more important to you than your staff or your clients. You cover their backside and they do the same for you. Without the power of the old boys' network, a senior banker is at the mercy of the back-stabbers in his own firm.

John Mack could attest to the power of his friends on Wall Street who helped rip Morgan Stanley (MS) apart at the seams and then pave the way for his return. His predecessor was found wanting on the street and Mr. Mack, being one of their own, was ushered back into the CEO role there. The fact he’s done a terrific job doesn’t diminish the reason for his return.

Wall Street, you know, is full of brilliant people. Then there are the movers and shakers.

And then there is Henry Paulson.

This is human nature, and the natural order of things.

Comments

[WAKEUP]

Thank your for acknowledging the existence of the old boys' network. Their influence is so pervasive that it is difficult to believe (but it is obviously true) that so many otherwise astute business people STILL do not believe the network exists, much less comprehend how controlling this insiders' group is. My own reading on this subject has brought me to the realization that not only do the "old boys" themselves exert tremendous pressure on events, they also have so many "little helpers" at every level of society / business that they are aware of even the smallest changes in the winds, across the board.