Bankers’ Ailing-Client Deals End With Greece: Alice Schroeder

Greece’s fiscal debacle and rescue package aren’t just about national finances. They also say a lot about Wall Street’s investment banks.

Banks have had a great run with products that allowed the buyer to gain in the short term, while leading to an uglier result down the road. Greece is but the latest example. The market for bankers nursing along ailing clients has peaked and will shrink. Wall Street will become smaller, but healthier, as it focuses on representing its clients, instead of hiding their weaknesses. Banks that can ride this trend will be better off.