Having exhausted their appetite for structured credit specialists, it seems banks are now opting for something a little less arcane: good old work-out experts who can help turn ailing businesses around. The Financial Times says banks’ commercial lending arms are shopping for the kinds of work-out experience more commonly found in private equity funds. The impetus appears to be debt for equity swaps, which could leave lenders holding equity in distressed companies.

Oriel Securities hires 11 analysts, one CFO. (Financial News)

Another sandwich board banker. (Clusterstock)

“To this day, the willingness of a Wall Street investment bank to pay me hundreds of thousands of dollars to dispense investment advice to grown-ups remains a mystery.” (Portfolio.com).

Banks that thought they had cryptonite power all of a sudden come back to earth. That’s costly and humbling and disruptive. (Reuters)

“Three out of four of Citigroup’s major businesses don’t make money, and one, Smith Barney, is making a lot less money.” (The Deal)

Is Goldman heading to $20? (Seeking Alpha)

No more mattress coverage at Goldman Sachs. (Alphaville)

It’s easier to see Morgan Stanley functioning as a bank than it is to see Goldman changing its spots. (Seeking Alpha)

No Christmas parties at Merrill (‘All party funds were spent on Peter Kraus’s exit package.’).
(Dealbreaker)

Last days of Lehman. (Bloomberg)

Dresdner’s parting gift. (Bloomberg)

Swedish investment bank nationalised. (FT)

Where are the women in private equity? (PeHub)

Half of all hedge funds will die. (FinAlternatives)

Financier ‘robbed from the rich to pay the Liberal Democrats’. (Independent)