M&A Is Dead At Goldman Sachs


Remember dealmaking? It used to be a big thing that Wall Street bankers do, but even with Goldman churning out huge numbers, that’s really just an afterthought. It’s all about trading, making markets and helping fuel the nation’s debt binge.

Deal advisory? Not so much:

Net revenues in Financial Advisory were $368 million, 54% lower than the second quarter of 2008, primarily reflecting a significant decline in industry-wide completed mergers and acquisitions. Net revenues in the firm’s Underwriting business were $1.07 billion, 21% higher than the second quarter of 2008, due to significantly higher net revenues in equity underwriting, as well as higher net revenues in debt underwriting. The increase in equity underwriting reflected very strong client activity. The increase in debt underwriting primarily reflected higher net revenues from investment-grade and municipal activity. The firm’s investment banking transaction backlog decreased during the quarter. (5)

Even last quarter, deal advisory was 42% higher than it was this time.

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