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When the ‘shadow pipeline’ is full, bank investors must beware

There's a new M&A pipeline in town — but it doesn't necessarily contain any revenues

Paul Taubman
Paul Taubman Photo: Getty Images

Over-promising and under-delivering have always been intrinsic to investment banking.

The tendency of bankers to hype their situation becomes even more pronounced during rocky periods, when they usually try and reassure their investors with the platitude: “The pipeline is full”.

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JPMorgan to Pay $330 Million Over 1MDB TransactionsExternal link

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