The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.
Opinion

Banking: Bursting the analysts’ bubble

The reputations of many analysts soared as other bankers lost credibility. But are their opinions as sound as many think?

The financial crisis rocketed analysts back into the spotlight. In the years leading up to 2008, we had almost forgotten that they existed. A few spoke out publicly but for the most part their analysis was attributed to the firms for which they worked, and it was hard to find analysts that really wanted to put their necks on the line.

Now, however, they are revered. It took a prediction of the housing crash for Nouriel Roubini, whose history boasts roles at the IMF and Treasury, to become so noted that he appears in the movie Wall Street 2. Meredith Whitney shot to fame after her accurately damning report on Citigroup back in 2007, and now runs her own research firm. Dick Bove, analyst at Rochdale Securities, is also now a household name for his outspoken critique of the banking industry – although he has not yet made it to Wikipedia, unlike Roubini or Whitney.

It’s fair enough. After sentiment developed that the ratings agencies, banks and regulators were all in bed together, the analyst is now regarded as the unbiased voice of Wall Street. And those who predicted correctly the events of 2008 and early 2009 are naturally held in high regard.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree