Even with 'historically low' fees, the investment bankers are still screwing them. http://www.cnbc.com/id/46190061Let’s look at the internal economics of Morgan Stanley’s fees. Imagine it takes around 90 days from the time Morgan Stanley lands the lead role until the IPO. Working 15 hours a day every day — including weekends — Morgan Stanley would be charging a rate of more than $18,500 per hour. Let’s say that there are 30 people staffed to the deal — probably too high, but there are likely to be lots of lawyers in that number. That’s an hourly charge of $617 for each person.In other words, a lot of the talk about the banks doing the deal for the sake of “prestige” is propaganda, meant to disguise the fact that the banks are making a ton of money off the deal. </snip>intercst
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