Terrible thing, denial. As the investment banking industry mourns the sudden death of the Wall Street model, it is not surprising that many are locked in grief. But it is worrying that some are still stuck in denial about why it died and what it will mean for those left behind.
An exchange traded fund tracking the performance of the FTSE 100 almost doubled in size last month, according to its provider Lyxor Asset Management, as investors rushed to bet on the index of the UK’s biggest companies rebounding from late-November lows.
London fund manager Henderson Global Investors has hired a team of Dutch currency managers from the beleaguered Belgo-Dutch bank Fortis, in a move that illustrates how firms that have been hit less hard by the credit crunch - including asset managers - can profit from the woes of the investment banks.