James Dondero Brings 30 Years Of Experience To The Investment Game
Investment banking is when a large corporation, bank or securities firm helps companies secure financing through underwriting or in most cases, working at the client’s agent. Investment banking is a serious business and when gone unchecked, the result is the financial collapse of 2008. Although this wasn’t the only such scandal in history, it sent shock waves across wall street. The result was Lehman Brothers going bankrupt; others such as Sallie Mae, Goldman Sachs, Morgan Stanley, Citigroup and Merill Lynch had to rescued by the government.
Investment banking can be confusing. Most people think it’s set up that way purposefully in order to fool many people — especially the consumers. Investment banking has two sides: Buy and sell. The sell side has to do with trading and securities, while the buy side mostly deals with hedge funds, life insurance, mutual funds and private equity funds. Due to the complexity of investment banking, only very smart people are placed in charge of billion dollar portfolios.
One investment banker who has made an indelible mark on the industry is James Dondero on twitter.com. One of the most respected and renowned financial mind in the game, Dondero is also CEO of Highland Capital Management — a position he’s held for over 30 years. Dondero has an extensive resume and has personally overseen dozens of distressed investment deals. Dondero is also responsible for many of the pioneering loan methods and marketing solutions for investors all over the globe.
After graduating from the University of Virginia, Dondero immediately went to work for Protective Life. Stints at several other investment firms including AUM, American Express and Morgan Guaranty continued to hone Dondero’s skills as a top investor. Luckily for Dondero, his company came through the banking collapse unscathed.
Most of the top investment banks came within a whisker of going belly up. The financial scandal and ensuing bail-out was not without an outcry from critics. A number of rules and regulations were put in place to provide banking oversight. Some feel this is noting more than window dressing and banks are just as pernicious now as they were nearly 10 years ago. The Dodd-Frank Act is credited with providing new banking rules and regulations. So far, it seems that the banks are complying.