This Day On The Street
Continue to site right-arrow
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

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

"Instead," De Santis said, "they got a highly trained expert that provided the same service who was merely paid by the hour."

Buckle up, bank investors. Just as Citigroup (C), J.P. Morgan Chase (JPM), Bank of America (BAC), Bank of New York Mellon (BK) and Goldman Sachs (GS) seek to build on their sterling 2012 performance, investors are facing the next probable victim in the collapsing digital economy: the lucrative merger-and-acquisitions business most big banks rely on for profitability.

"It's what you talk about all the time. The Web comes in and forces efficiencies into a market, which collapses that market," he said. "And now it's coming to mergers and acquisitions."

Expert Network as iBank
Let's be clear: Nobody anywhere near this debate -- that means me, De Santis or anybody I interviewed -- is minimizing the risk folks such as Gilman and Martoma may or may not try to cheat using expert networks.

But the sheer scale of these systems makes Wall Street look itty bitty by comparison.

Gerson Lehrman, who confirmed that De Santis had used its networks, confirmed it had more than 350,000 registered individuals on its micro-consulting platform, which is used by more than 1,000 institutional clients and growing.

"We've heard people say we can be disruptive to traditional industries," Alexander Saint-Amand, president and CEO of the Gerson Lehrman Group, wrote me in an email. "But we've seen we can not only be an asset to private equity firms and corporations who are engaged in M&A activity as well as to the research and advisory firms working on these deals."

Considering that the company has arranged more than 1 million such engagements over 10 years, Gerson has clearly learned a thing or two helping investors see a buy from a sell. Knowledge it shares openly in its website's Client Blueprint is a recipe for pretty much every step of the mergers and acquisition process.

2 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs