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Why Investment Bankers Should Focus On Mastering Relationships

Why Investment Bankers Should Focus On Mastering Relationships

Financial expert and author of Investment Banking Explained, Michel Fleuriet delivers a complete overview of investment banking in its modern form. Whether you’re in the business or planning to launch an investment banking career, his insight will give you the knowledge you need to succeed. 

 

Finance is all about trust. John Pierpont Morgan, who created JPMorgan in 1895, told the Banking and Currency Committee hearings in 1912 that the first thing in credit was “character, before money or anything else. Money cannot buy it.” Without trust, finance collapses, as we saw in 2008.

 

Ten years later, this is true for the entire economy. Douglas A. Ready, from the MIT Sloan School of Management, wrote recently: “In a digital business environment, great leaders are those who appreciate and understand the power of technology and analytics. But that alone is insufficient. They must also have the skills and mindsets to bring together people from diverse businesses and functions to deliver superior customer outcomes”[1].

 

A collaborative work environment is essential in investment banking for two reasons. Firstly, because a customer chooses a bank based on people; his or her decision must be based on trust, based on previous experience or recommendation. Secondly, to deliver superior customer outcomes, bankers must establish relationships between the bank’s silos to identify the best ways to meet a customer’s needs.

 

Chapter 6 of the book Investment banking explained explains what is the role of a relationship manager in an investment bank and what are the four keys to successful relationship management. Read more here.

 

[1]   Douglas A. Ready, https://sloanreview.mit.edu/article/why-great-leaders-focus-on-mastering-relationships/

 

Michel Fleuriet was the Harry W. Reynolds International Adjunct Professor of Finance, Wharton School of Finance at the University of Pennsylvania, and the founder of Université Paris-Dauphine’s master’s program in investment banking. Prior to his career in academia, Fleuriet served as chairman of HSBC France, chairman and head of investment banking at Merrill Lynch France, and CEO of Chase Manhattan France. He was for many years a professor of finance at HEC and holds a PhD in law from the Université Panthéon-Sorbonne and a PhD in finance from Wharton. His principal experience is in corporate finance and mergers and acquisition.

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Michel Fleuriet was the Harry W. Reynolds International Adjunct Professor of Finance, Wharton School of Finance at the University of Pennsylvania, and the founder of Université Paris-Dauphine’s master’s program in investment banking. Prior to his career in academia, Fleuriet served as chairman of HSBC France, chairman and head of investment banking at Merrill Lynch France, and CEO of Chase Manhattan France. He was for many years a professor of finance at HEC and holds a PhD in law from the Université Panthéon-Sorbonne and a PhD in finance from Wharton. His principal experience is in corporate finance and mergers and acquisition.