As we near the "big Money Bonfire of 2008," a number of questions weigh heavily on the nation's mind: Should the federal government receive shares in the banks and companies being bailed out? Is $700 billion enough? Can we have another day to think this over, Mr. Paulson? But most of all the nation has been wondering what will happen to current and prospective Ivy League bankers. This is where Ivygate comes in. Last week we ran a feature where worried bankers told you they were "trying to stay positive." This week we bring you...um, more quotes from bankers.

George, an Ivy-educated pseudonymous banker working as an analyst at Merrill Lynch, describes how he found out about Bank of America's buyout of Merrill:

I was shocked. I was screaming.

One of my friends at Bank of America texted me, 'Hey, we might be buying you guys.'

I was in denial. You see, Merrill has a much better repuation than a commercial bank like Bank of America. I was shocked I would be joining a lower-tier commercial bank. There's a feeling, 'I didn't go through this whole interview process to work at a commercial bank.'

Hopefully, Bank of America won't change too much of Merrill's culture.

Jeffrey, a pseudonymous Ivy grad working at JP Morgan, had this to say:

Lots of people will be jobless in the coming months.

I applied for jobs at Lehman. I could have been that guy with the Lehman job. It's very frightening.

After the jump, George returns to tell us why $700 billion isn't enough and why Goldman Sachs's and Morgan Stanley's decision to become "bank holding companies" is the end of i-banking as Ivy League cash bonanza. Read the rest of this entry »

Though some people think the "fundamentals of our economy are strong," a lot of people recognize the Dow's dizzying 504 point fall yesterday for what it is: the latest development in a giant, evolving problem. In case you don't read newspapers or talk to others: the bulge bracket investment bank Lehman Brothers collapsed over the weekend and is filing for bankruptcy; Merrill Lynch, another bulge bracket i-bank, has been bought by the Bank of America for around half its recent value; and AIG, a big insurance company, might just pull a Lehman.

Where does this leave our i-banking brethern?

Um, it depends on where they work.

One Ivy alum who is/was working as a Lehman analyst had this to say:

I didn't get the official word until Sunday night.

I'm shocked and disappointed. I'm just trying to stay positive.

I'm out of a job at the end of the week but at least I'm young. I can pick up and come back. I feel sorry for the older guys who just lost a fortune.

Lehman analyst on Merrill Lynch:

I have friends over there. They don't really know what's going to happen. They just have to wait and see how and if they're integrated into Bank of America.

Basically, it's like what happens in mixed families, only some of the kids are going to be laid off and go back to grad school.

An Ivy alum working for an unnamed but major investment bank that is still standing had this to say:

Everyone's a little afraid but my Managing Director says we're comfortable. And if the market recovers the people who do survive are going to have a strong advantage.

On the subject of next year's crop of Ivy interns and analysts, this banker says:

They're fucked.

After the jump, this banker explains how bad things are going to get. Read the rest of this entry »