Yesterday brought you the startling news that some mutual funds are starting to look like hedge funds (er, sort of). Today, the Times of London says some banks are starting to look like hedge funds, thanks to an increase in prop trading.** :
“Some investment banks are beginning to look more like hedge funds than investment banks,” [Lehman director Henry Kaufman] told a City audience. “That’s an enormous departure from the past.”
Aside from the fact that we're starting to think there are a lot of people who work in finance and still don't know what a hedge fund actually is, it's quickly becoming the catch-all euphemism for any sort of departure from previously more conservative behavior.
** Tomorrow's news: DealBreaker looks increasingly like a hedge fund.
Investment Banks Getting More Like Hedge Funds, Says Dr. Doom [TOL via Dealbook]