Book Review: The Accidental Investment Banker

Rarely does an individual take the time to record first-hand experiences, especially in the hectic industry of investment banking.  When working relentlessly to close a deal, it can be easy to lose sight of the forest and focus on the trees.  In his book, The Accidental Investment Banker, Jonathan Knee takes a step back and analyzes the development of investment banking while retaining an insider’s perspective.  He uses his own experiences to tell the story of how investment banking underwent a fundamental transformation from a relationship-oriented, values-driven profession to a transactional, at times corrupt industry with a reputation for being aggressive and opportunistic.

Why should you, a business professional, have a thorough understanding of investment banking?  First, investment bankers provide advice on the issuance of bonds and handle selling a company’s stock to the public.  Not only do I-bankers manage different kinds of financial assets, they also serve as crucial players in the shaping of the American and world economies by:
overseeing mergers and acquisitions of multi-billion dollar corporations 
directing capital to companies that provide valuable products and services to people.

Although Knee can come across as excessively nostalgic and romantic, he does an excellent job of capturing the sense of meaning we all receive when doing something important.  Through his writings, you can sense he yearns to return to a time when relationships govern investment banking. 

Why is this book better than the rest?  Experience is the best teacher of all.  Knee is not a journalist collecting diluted facts and stories second-hand.  Nor is he a historian writing from an ivory tower.  He’s spent years in the trenches at Goldman Sachs and Morgan Stanley, which have culminated into a wealth of knowledge and insight to be shared with the general public.  Even clients and professionals often find the role of investment bankers mysterious, and this book does a superb job of explaining what  they actually do.  In sum, it would be impossible for someone outside the industry to write this book.