This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

The Digital Skeptic: Expert Networks Crush Lucrative Banking M&A

NEW YORK ( TheStreet) -- My buddy C.J. De Santis is an official expert in so-called expert networks.

"I signed up last month," he told me over a plate of ham dinner last month. He was referring to a New York company called the Gerson Lehrman Group, which connects experts with those willing to pay real money for the advice of real experts.

De Santis certainly qualifies. The former managing director at Deutsche Bank Securities now independently advises investors on horribly arcane, but lucrative, areas of fixed-income securities.

A few weeks after signing up, he said, he was connected to a major investor looking to do a billion-dollar acquisition of something called a life-settlements originator, which manages bunches of life insurance policies.

"I got on the phone with them. I told them all I knew," he said. "I made $600 an hour. They were thrilled."

De Santis and I had spoken about the Gerson Lehrman Group before. The company is smack in the middle of a high-profile, $275 million SEC insider trading investigation concerning how trader Mathew Martoma found researcher Dr. Sid Gilman using the Gerson Lehrman network -- and may have traded on material inside information delivered by Gilman.

I half-jokingly asked De Santis if he had divulged any insider information. He smiled. Paused. And then said this:

"I told them nothing that an average investment banker wouldn't know," he said. De Santis then broke out his larger point: Here was a billion-dollar deal that didn't need a traditional, take-a-fat-percentage Wall Street mergers-and-acquisitions bank to get done.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
AAPL $127.01 -0.46%
FB $84.24 1.40%
GOOG $536.36 0.18%
TSLA $209.73 2.20%
YHOO $44.82 0.37%


DOW 17,981.28 -53.65 -0.30%
S&P 500 2,102.30 +1.90 0.09%
NASDAQ 5,021.3520 +26.75 0.54%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs