The article by John Carney discusses a continued change in the investment banking industry. Evidently, it predicts a shift of banks from investment banking to other sections of the banking and service industry. For instance, through an example of the J.P, Morgan Chase & Co.’s website there is a change in the number of recruits needed for investment banking, this article, however, depicts that there is an evident change in Wall Street, and soon investment banking will be noted as another aspect that went down.
Notably, in the olden days, around 50 years ago, investment banks were singularly private partnerships that specialized in specific categories of markets and financial products. However, the process the has shifted to public traded floors that are evident today, which was pushed by the continued market pressure, technological advancements, personal motivation and regulatory change (Carney, 2016). Nonetheless, the article argues that the same notions are changing the investment banking once again, thus causing a change in the trading perspective.
In this case, the article predicts that some changes out to be eminent, for instance, trading is said to migrate to hedge funds, while some jobs such as stock research will be replaced by technology. Moreover, it is predicted that capital allocation and heavy funding will shift from commercial banks to pension funds and similar sovereign- wealth funds (Carney, 2016). Moreover, it is predicted that investment banks will start charging for services such as details on research and pricing which is given away so as to win business.
In conclusion, it evident that investment banks are losing their value in the banking industry, with the articles’’ depiction that they will only get smaller shift their focus to minor domains. Moreover, with the evidence that most major investment banks are changing their services, it is clear that a distance revolution is coming into the banking industry.