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. Please see our Subscription Terms and Conditions.

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

Investment Banking: BoA's shy east-coast partner

Following the announcement in February of a merger between Morgan Stanley and Dean Witter, investment bankers have been guessing about the shape of other such deals. Few would have predicted the strategic alliance unveiled in March between Bank of America, the US's third-largest commercial bank, and DE Shaw, a publicity-shy New York-based investment bank, run by computer scientists.

David Shaw, the firm's founder, chairman and chief executive, is a former computer science professor of Columbia University where he researched supercomputing in the mid-1980s. He joined Morgan Stanley in 1986 as one of the first generation of Wall Street rocket scientists using cutting-edge computer technology to earn proprietary trading profits. He left to set up his own firm, DE Shaw, in 1988, which he ran as a hedge fund for several years before branching out in late 1992 into customer dealing in equity-linked securities, convertible bonds and warrants. The firm now regularly appears as a co-manager in syndicates for Swiss franc and dollar equity-linked new issues by Japanese borrowers. Its London office is a leading market-maker in these equity derivatives.

DE Shaw has grown from six employees to over 500 ­ bringing it into the top 25 securities firms in the US ­ while managing to maintain a low profile.

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.


Unlimited access to and

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


Unlimited access to and, 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


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