That’s a charge we’ve heard some people at the biggest Wall Street firms make in private. A profile on Jonathan Knee in the New York Post makes it explicit.
Knee's critics are quick to label him disingenuous for attacking investment banks shortly after fleeing them for boutique advisory firm Evercore Partners, which Knee declined to discuss citing a quiet period following Evercore's IPO last week. But even he concedes, "Boutiques as a category are not immune from any number of the criticisms that I make about investment banks." After all, boutique banks are populated almost exclusively by refugees from larger institutions.
In fact, Knee, enjoying a lunch at dealmaker hangout San Pietro, said he believes investment banks' ever-growing payrolls are partly responsible for their intense short-term-profit focus and the erosion of their role as company confidantes.
So that’s Knees answer. While boutiques are not immune to his critique, their smaller payrolls make them less focused on short-term profits.
Money Grubbers [New York Post]