[lbo-talk] Mayday

Doug Henwood dhenwood at panix.com
Sun May 1 17:10:14 PDT 2005


joanna wrote:


>can you say more? What does "deregulation of commissions" mean? How
>did it play out?

Stock commissions used to be fixed, and price competition was really constrained on Wall Street. It was a clubby world based on connections and relationships. Commission dereg introduced competition into this Eden, and the trend over the next few years would be towards the transaction replacing the relationship. More competition, more volatility, more aggression. The end of financial quiescence, the onset of the LBO, the resurgence of financial engineering, etc.

Doug



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