NOT under the TARP
Jim Reynolds, Jr., Chairman and CEO of Loop Capital Markets
TARP funds may have given America’s large investment banks short term loans of operating capital, but it has also given these banks black eyes in the perception of investors. The reaction is understandable; if an investment bank is in so much trouble that they require taxpayer funds to remain afloat, would you want to invest in it and place your trust in their leadership?
It’s a wonder that any investment firms are seeing growth these days, but Loop Capital Markets happens to be one of them. CEO and co-founder Jim Reynolds, Jr. recently sat down with CNBC to discuss his company’s success (see Related Video link below). The largest minority-owned investment firm in the United States, Loop Capital is currently hiring employees and growing into areas where big investment banks are losing ground.
“An exciting entrepreneurial environment”
Known as a boutique investment banking firm, Loop Capital Markets have experienced growth over the past two years that other firms haven’t been able to match. The reasons for this, according to Reynolds, are that Loop Capital has been able to recruit from top-tier talent (read: those who the Wall Street monoliths have laid off due to financial shenanigans from the government and top executives) and that they have become more accepted by their client base.
Why are they more accepted? Because they didn’t accept TARP bailout funds, that’s why. And it’s a great reason why Reynolds and his charges have done right while everyone else played games with your money.
Serving medium-sized clients
Reynolds freely admits that the bulk of Loop Capital Markets’ work is with medium-sized clients. He calls the recent changes in the investment banking field a “combination push/pull.” Large investment banks had to get out of certain businesses because they were taking on too much toxic debt. This is what triggered the need for mass reconfiguration, which is still occurring.
In their reconfiguration, the middle-sized investors were generally left behind. Firms like Loop Capital Markets are happy to serve them.
Related Video:
CNBC – “Boutique Firms Benefitting”
Good to hear someone in the financial/investment world is still able to make money. It’s odd – boutique agencies, the self started or specialty firms as opposed to the huge multinationals are the most stable ones. It seems that restraint instead of a maddening quest for profit, moderation in a sense, might be a key to the long term health of a company. Might be something to that….