What have you always wondered about the economy? Tell us

New bank on the block

Ethan Lindsey Jun 16, 2006


MARK AUSTIN THOMAS: A new investment bank opened up in New York on Thursday. Perella Weinberg Partners is what they call a boutique firm, that will cater to wealthy investors and companies. Marketplace’s Ethan Lindsey wonders what happened to the common investor?

ETHAN LINDSEY: Investment bankers used to be all about the hoity-toity. But the big name firms have all gone public and merged with consumer banks.

BRAD HINTZ: And what we’ve increasingly seen in terms of Wall Street is that these firms have become larger and larger and more bureaucratic organizations.

Analyst Brad Hintz with Sanford Bernstein says i-bankers worry they’re being relegated to advising the hoi polloi.

On Thursday, former Morgan Stanley rainmaker Joseph Perella struck a blow for the upper crust when he opened the doors of his boutique trading firm.

Some say this could be the beginning of a trend. Does this mean the little guy investor is back at the end of the line?

HINTZ: What it really means is these are fun places to work. That’s a very curious thing to say, but to a dealmaker this is like going to Rome.

In the end, Thursday’s announcement may just be Wall Street splitting up after a wave of too many mergers.

I’m Ethan Lindsey, for Marketplace.

Marketplace is on a mission.

We believe Main Street matters as much as Wall Street, economic news is made relevant and real through human stories, and a touch of humor helps enliven topics you might typically find…well, dull.

Through the signature style that only Marketplace can deliver, we’re on a mission to raise the economic intelligence of the country—but we don’t do it alone. We count on listeners and readers like you to keep this public service free and accessible to all. Will you become a partner in our mission today?

Your donation is critical to the future of public service journalism. Support our work today – for as little as $5 – and help us keep making people smarter.