Over the past few years, the bulge-bracket investment banks
have indulged in something of a tech-spending frenzy. There have
been huge events to prepare for such as the euro, Y2K and Basle II
compliance. In addition, post-merger integration has been a major
headache and there have been compelling competitive pressures. The
development of the internet as a new distribution channel, for
example, was something that few banks believed they could ignore in
the boom times without grave damage to their businesses.
Unfortunately the rise of online finance coincided with a bull
market full of institutions flush with cash, big egos, big money
and a tireless quest for the latest IT gadgetry. "There was a
triple whammy - a huge internet boom, a massive expectation of what
it could do at a time of booming markets and everyone making too
much money," says Justin Bull, managing director and head of
e-commerce at Barclays Capital. "It made...
