The Battle for Wall Street: Behind the Lines in the Struggle that Pushed an Industry into Turmoil

An insider′s look at the changing balance of power on Wall Street

A monumental battle is raging in the ever–shifting, always tumultuous world of Wall Street. The Battle for Wall Street follows the struggle for power between two giants: the sellers, traditional commercial and investment banks; and the buyers, upstart hedge funds, private equity firms, and the like.

Richard Goldberg who has spent thirty years working with financial industry leaders gives you a detailed understanding of what is going on in this dynamic arena and the forces behind the shift of power from the old sell–side gatekeepers to the new buy–side players.

The Battle for Wall Street examines the instruments of change liquidity and financial technology and the agents of change: hedge funds, private equity, financial entrepreneurs, endowments, exchanges, and sovereign wealth funds. Even more importantly, it outlines the strategic implications for the winners and losers. Goldberg describes all this against the dramatic backdrop of the subprime mortgage and credit crisis and the resulting capitulation of global firms such as Bear Stearns and Lehman Brothers.

Goldberg′s unique access to major players brings this book to life with fascinating anecdotes and stories about the financial generals who have left their mark in the battle for Wall Street.

Acknowledgments vii

Introduction: Let the Battle for Wall Street Begin ix

Part One: Instruments of Change 1

Chapter 1 Sea of Liquidity 3

Chapter 2 Financial Information in a Digital Age 17

Chapter 3 Prime Brokerage Meeting Hall 37

Part Two: Agents of Change 47

Chapter 4 Hedge Funds: Buy–Side Player, Sell–Side Foe 49

Chapter 5 Private Equity: Buy–Side Player, Sell–Side Friend 67

Chapter 6 Entrepreneurs to Endowments: Buy–side Catalysts 87

Chapter 7 Exchanges: Sell–Side Voice, Buy–Side Electronics 107

Chapter 8 Sovereign Wealth Funds: Sell Side Today, Buy Side Tomorrow 123

Part Three: Implications of Change 135

Chapter 9 Sell–Side Casualties, Buy–Side Implications 137

Chapter 10 Buy–Side Casualties, Sell–Side Implications 155

Chapter 11 Regulatory Implications 171

Chapter 12 Future Implications 191

Notes 205

About the Author 235

Index 237