How the Game is Played, IPO Division

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Back when I used to work for a living, I often wondered why investment banks all charged 7% fees for managing IPOs. Why wasn’t there more competition among bankers? Why didn’t some sharp IPO operators at Goldman or Morgan Stanley head off to start up a boutique firm that snagged high-quality business with slightly lower fees? What happened to the free market?

Well, now we know the answer: because there’s widespread collusion on Wall Street. Felix Salmon summarizes the damning evidence here.

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THE TRUTH...

is the first thing despots go after. An unwavering commitment to it is probably what draws you to Mother Jones' journalism. And as we're seeing in the US and the world around, authoritarians seek to poison the discourse and the way we relate to each other because they can't stand people coming together around a shared sense of the truth—it's a huge threat to them.

Which is also a pretty great way to describe Mother Jones' mission: People coming together around the truth to hold power accountable.

And right now, we need to raise about $400,000 from our online readers over the next two months to hit our annual goal and make good on that mission. Read more about the information war we find ourselves in and how people-powered, independent reporting can and must rise to the challenge—and please support our team's truth-telling journalism with a donation if you can right now.

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