At our recent New York Think Tank, IROs commiserated over the lack of focus of the analysts covering them. They understood completely why; analysts are part of the growing pool of Wall Street-types losing their jobs.
Yes, it’s true. Goldman Sachs, Citigroup and Bank of America have dismissed dozens of analysts in the past weeks. At most danger of extinction are the specific breed of analysts who cover the investment banks themselves. Some of the highest profile among them are out, including William Tanona, Prashant Bhatia and Michael Hecht, as the New York Times’ Louise Story reports.
Even while IROs love to hate analysts, they will be missed. And there is the thinking that their firing is a false economy. ‘Analysts can be extremely high-priced, so when you’re looking to cut costs, that’s a place to look,’ William Fitzpatrick, an analyst at Optique Capital, tells Story. ‘But at the end of the day, given the amount of headlines that these companies attract, it’s not clear to me why you wouldn’t want the coverage there.’