Summary
The B.E. 100s: B.E. Investment Bank Overview - Cover Story - Industry Overview
1994 was a difficult year for firms that specialize in municipal bond underwriting, which is an important source of revenue for the nation's African American-owned investment banks. WR Lazard & Co founder Wardell R. Lazard died during the year, but the firm has pressed on in his absence.See the full content of this document
Extract
The tough get going.
WHEN WARDELL R. LAZARD, FOUNDER AND managing principal of WR Lazard & Co., died unexpectedly in May last year, many predicted that his untimely death would be his company's demise.
His death could not have come at a worse time. Wall Street won't quickly forget 1994, which goes on record as the worst fixed-income bond market in more than 20 years. As the year unfolded, shell-shocked investment bankers saw year-end bonuses slashed by more than half from the previous year. The market rout was marked by the closing of Kidder, Peabody, which had been crippled by a U.S. Treasury bond trading scandal. Other firms such as Goldman, Sachs and Merrill Lynch announced huge layoffs. Meanwhile, state and local governments continued to be pinched by economic woes, and 40% fewer municipal bonds were issued. Declining profit margins in public or municipal fin...See the full content of this document
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