An insider’s look at the changing balance of power on Wall
Street
The Battle for Wall Street follows the struggle for power
between two giants: the sellers, traditional commercial and
investments banks; and the buyers, upstart hedge funds, private
equity firms and the like. The battle is about winning the hearts,
minds, and – yes, the wallets – of global investors.
This battle is still running its course, and with the insights of
industry veteran Richard Goldberg, who has had a front row seat,
readers will gain a detailed understanding as to what, exactly, is
going on within this dynamic arena, specifically the forces behind
the shift of power from the old sell side gatekeepers to the new
buy side players. The book will play out in three acts: Act
One will examine the instruments of change – liquidity and
financial technology – along with their influence on the sell
and buy sides. Act Two will look at the agents of change –
hedge funds, private equity, financial entrepreneurs, endowments,
exchanges and sovereign wealth funds – and their impact on
the sell and buy sides. In Act Three, Goldberg will take out his
crystal ball and walk through the strategic implications for the
winners and losers in this battle, against the dramatic backdrop of
the subprime mortgage crisis and the resulting shakeup of global
firms like Bear Stearns.
But Wall Street isn’t simply about institutions or corporate
battles. It’s a landscape dominated by personalities.
Goldberg’s unique access to major players will bring this book to
life with amazing anecdotes and stories about the financial
generals who have left their mark in The Battle for Wall
Street.
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Acknowledgments vii
Introduction: Let the Battle for Wall Street Begin ix
Part One: Instruments of Change 1
Chapter 1 Sea of Liquidity 3
Chapter 2 Financial Information in a Digital Age 17
Chapter 3 Prime Brokerage Meeting Hall 37
Part Two: Agents of Change 47
Chapter 4 Hedge Funds: Buy-Side Player, Sell-Side Foe 49
Chapter 5 Private Equity: Buy-Side Player, Sell-Side Friend 67
Chapter 6 Entrepreneurs to Endowments: Buy-side Catalysts 87
Chapter 7 Exchanges: Sell-Side Voice, Buy-Side Electronics 107
Chapter 8 Sovereign Wealth Funds: Sell Side Today, Buy Side Tomorrow 123
Part Three: Implications of Change 135
Chapter 9 Sell-Side Casualties, Buy-Side Implications 137
Chapter 10 Buy-Side Casualties, Sell-Side Implications 155
Chapter 11 Regulatory Implications 171
Chapter 12 Future Implications 191
Notes 205
About the Author 235
Index 237
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Richard Goldberg (New York, NY) is currently a Managing Director of Putnam Lovell NBF Securities Inc., a leading investment bank to the global financial services community. He is also an Adjunct Associate Professor at Columbia University’s School of International & Public Affairs and is a visiting Adjunct Professor at Brandeis University’s International Business School. Goldberg has advised on significant deals including the Dean Witter/Morgan Stanley merger, the UBS acquisition of Paine Webber the Herzog Heine sale to Merrill Lynch, the DLJ sale to Credit Suisse, the D.E. Shaw sale of selected businesses to KBC Bank N.V. and Sun America merger with AIG. He received an MBA from the Wharton School of Business at the University of Pennsylvania.