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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Fact:

In-depth journalism that investigates the powerful takes real money and is so damn important right now.But it doesn’t take a Mother Jones investigation to know that billionaires and corporations will never fund the type of reporting (like they do politicians) we do that exists to help bring about change. Instead, our mission-driven journalism is made possible by people power, and has been for 46 years now since our founding as a non-profit.

In “TITLE TK” Monica Bauerlein writes about the perilous moment we’re in, and why it’s so important that we raise $325,000 by the time November’s midterms are decided so we can be ready to throw everything we have at the big issues facing the nation no matter what happens. Please help MoJo’s people-powered journalism with a donation today.

$400,000 to go!

payment methods

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