Jim Letourneau's Blog

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Fun with Tombstones

In the financial business there is often a little celebration after money is raised for a company. These include public announcements in the financial pages describing the bare bones of the financing. Often they'll make little lucite ornaments as well.

In a perfect world the newly funded company will put the money to good use, the investors will earn a return commensurate with the risks they have taken and of course the underwriters (not undertakers!) will make fat commission. In the land of the (formerly) free market, all tax paying citizens are now participating in the financing of some large financial institutions. Paul Kedrosky's aptly titled blog, Infectious Greed has posted a tombstone summarizing the last few weeks of financial activity.

In round numbers, that works out to about $2300/person.

I sure hope none of that money is going to the 2.5 billion bonus pool for Lehman Brothers New York staff. They've set aside $250,000/person!

On the other hand they won't be able to walk across "the street" to get a job. You won't be impressing anyone throwing around the title of "Investment Banker" for a very long time.