Speaking at a financial conference in Geneva Monday, Henry Ramallo, an executive at Neuberger Berman LLC, expressed some thoughts on future of investment banks and which private equity firms are
most likely to buy the asset management firm he manages from bankrupt investment bank Lehman Brothers Holdings Inc.
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The
Financial Times reports
that Ramallo told the newspaper that the most likely winners in the
auction for Neuberger were Clayton, Dubilier & Rice Inc., Bain Capital LLC
or Hellman & Friedman LLC, as each had spent the most time conducting
due diligence. The news isn't earth shattering, since The Deal and others have been bandying about the three firms for over a week.
More interesting were his thoughts on the future of banking. During his talk at the Union Bancaire Privée conference, Ramallo said
that the investment banking model was broken to such a degree that he "would
even be surprised if Goldman Sachs survived for the simple reason that
everyone is going to be subject to more regulation. ... They are not
staffed to deal with the new regulatory environment that will be
imposed on them. I think there is going to be a windfall for the old
fashioned-type banks."
Ramallo, who manages funds to Neuberger, is looking at traditional banks
as the biggest winners from the expected consolidation in the banking
sector. -
George White
See story from the Financial Times
See Crisis on Wall Street Dealwatch
