How the Game is Played, IPO Division


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.

WE DON'T KNOW

What's going to happen next as the headlines grow crazier and more disconcerting by the day. But we do know the job of an independent, unrelenting press is more important than ever—and the ongoing commitment of MoJo readers to fight for a democracy where facts matter and all can participate is absolutely vital.

If you feel the urgency deep in your bones like we do, please consider signing up as a monthly donor during our fall pledge drive to support Mother Jones' fair and fearless reporting for the long haul (or make a one-time gift if that works better for you). The headlines may fade, but the need to investigate the powerful never will.