Great news: The job market is flourishing — for bankers whose job includes telling companies how to lay people off! Investment banks are getting ready to do some major mergers and acquisitions in the coming year, and as a result are hiring like the dickens, The New York Times reports.
To hear former Labor Secretary Robert Reich tell it, this is a result of the Federal Reserve’s policy of low interest rates and “quantitative easing,” wherein the Fed buys bonds in an effort to lower long-term interest rates and stimulate the economy. Reich forecast in late August that low interest rates wouldn’t help anybody besides M&A brokers. The reason: consumers already have too much debt and small businesses don’t need to expand when demand is so weak. (Boomberg, meanwhile, says that some businesses that want loans are getting rejected.)
The Times talks to a recruiting expert:
“There is a build-up of moves that haven’t happened for the last two years,” said Jonathan Nicholson, a managing director at London-based recruitment firm Astbury Marsden. “Once that carousel starts moving again the flow continues.”
A banker carousel! How fun. M&A bankers ought to thank the government for its kind support during these difficult economic times.