The clouds parted over the investment banking business in the first quarter of this year amid some hope that a more sustainable model for success is emerging.
September 21, 2008, was a date that may be remembered in the annals of the global financial and economic crisis. It was an important milestone for the investment banking industry in the United States. That was the day the Federal Reserve announced that Goldman Sachs and Morgan Stanley, the last big independent investment banks on Wall Street, would become bank holding companies.
A new model of universal banking more akin to the European system is evolving in the wake of the demise of Glass-Steagall, the Depression-era legislation that separated commercial banking from investment banking. If there is a single financial institution that could be cited as a model of the new global investment bank, it is J.P. Morgan.
In 2000, after the Gramm-Leach-Bliley Act repealed the restrictions on banks affiliating with securities firms, J.P. Morgan merged with Chase Manhattan. It was a clash of cultures from the beginning, but what emerged was a financial institution that combines the capital-raising and financial advisory skills of a traditional investment bank with the funding stability of a retail bank that has a broad base of depositors.
In 2004 JPMorgan Chase merged with Chicago-based Bank One, extending its reach into the Midwest and bringing the bank its current chief executive, Jamie Dimon. With the acquisitions last year of Bear Stearns and Washington Mutual, Dimon has maintained a careful balance of retail, commercial and investment banking.
There is plenty of blame to go around for causing the global financial crisis. Years of cheap money and lax regulation led to the housing boom and bust. Global contagion and panic selling followed the realization that ratings agencies and accountants may have swept considerable dirt under the rugs. From overly creative financial innovation to mismanaged risks, the list of culprits is seemingly endless.
The time has come once again, more than two years after the credit crunch first hit, to recognize those financial institutions that continue to provide outstanding services to their clients amid the turmoil in the financial world. Global Finances editors, with input from industry analysts, used a series of criteria to identify the best investment banks in a wide range of categories, by geography and sector.
Our selection criteria included market share, customer service and advice, deal-structuring capabilities, distribution network and staff dedicated to investment banking. We also considered efforts to overcome difficult market conditions, pricing and after-market performance of underwritten securities. The winners are not necessarily the biggest banks, but rather the best banksthe ones that corporations around the world should consider when looking for a financial adviser to meet their investment banking needs.
| Best Investment Bank | J.P.Morgan |
| Best Equity Bank | J.P.Morgan |
| Best Debt Bank | J.P.Morgan |
| Best M&A; Bank | Goldman Sachs |
| Best Up-and-Comer | CastleOak Securities |
| Most Creative | RBC Capital Markets |
|
Best Equity Deal
|
Visa IPO J.P.Morgan, Goldman Sachs |
|
Best Debt Deal
|
$16 billion Roche Holding notes Bank of America, Citi, J.P. Morgan |
|
Best M&A; Deal
|
Pfizer-Wyeth Bank of America Merrill Lynch, Goldman Sachs, J.P. Morgan, Barclays Capital, Citi |
| Advising target |
Morgan Stanley, Evercore Partners |
|
WORLD’S BEST INVESTMENT BANKS |
| Consumer | J.P.Morgan |
| Financial Institutions | Morgan Stanley |
| Healthcare | Goldman Sachs |
| Industrial/Chemicals | Citi |
| Infrastructure | Scotia Capital |
| Media & Entertainment | Morgan Stanley |
| Oil & Gas | Bank of America Merrill Lynch |
| Power | Rothschild |
| Real Estate | Barclays Capital |
| Technology |
Goldman Sachs |
| Telecom | Bank of America Merrill Lynch |
|
NORTH AMERICA |
|
| Best Investment Bank | J.P. Morgan |
| Best Equity Bank | J.P. Morgan |
| Best Debt Bank | Bank of America Merrill Lynch |
| Best M&A; Bank | Goldman Sachs |
|
WESTERN EUROPE |
|
| Best Investment Bank | J.P. Morgan |
| Best Equity Bank | J.P. Morgan |
| Best Debt Bank | Deutsche Bank |
| Best M&A; Bank | J.P. Morgan |
|
ASIA |
|
| Best Investment Bank |
China International Capital Capital Corporation (CICC) |
| Best Equity Bank | China Citic Bank |
| Best Debt Bank | Citi |
| Best M&A; Ban |
China International Capital Capital Corporation (CICC) |
|
CENTRAL & EASTERN EUROPE |
|
| Best Investment Bank | Bank of America Merrill Lynch |
| Best Equity Bank | Deutsche Bank |
| Best Debt Bank | Citi |
| Best M&A; Bank | Bank of America Merrill Lynch |
|
LATIN AMERICA |
|
| Best Investment Bank | Credit Suisse |
| Best Equity Bank | Credit Suisse |
| Best Debt Bank | Deutsche Bank |
| Best M&A; Bank | Rothschild |
|
MIDDLE EAST |
|
| Best Investment Bank | SambaCapital |
| Best Equity Bank | SambaCapital |
| Best Debt Bank | Deutsche Bank |
| Best M&A; Bank | Barclays Capital |
|
AFRICA |
|
| Best Investment Bank | Best M&A; Bank |
| Best Equity Bank | Best M&A; Bank |
| Best Debt Bank | Standard Bank |
| Best M&A; Bank | Rand Merchant Bank |
| Global |
Goldman Sachs Principal Investment Area |
| North America | TPG |
| Western Europe | CVC Capital Partners |
| Global | Linklaters |
| North America | Sullivan & Cromwell |
| Western Europe | Linklaters |
| Asia | Sullivan & Cromwell |
| Central & Eastern Europe | Clifford Chance |
| Latin America |
Mattos Filho, Veiga Filho, Marrey Jre Quiroga Advogados |
| Mddle East & Africa |
Clifford Chance |
|
NORTH AMERICA |
|
| Canada | Scotia Capital |
| United States | J.P. Morgan |
|
EUROPE |
|
| France | Rothschild |
| Germany | Deutsche Bank |
| Italy | Mediobanca |
| Netherlands | Rabobank |
| Nordic Countries | Handelsbanken Capital Markets |
| Portugal | CaixaBI |
| Russia | Credit Suisse |
| Spain | Morgan Stanley |
| Switzerland | Credit Suisse |
| Turkey | Garanti Securities |
| United Kingdom | Morgan Stanley |
|
ASIA |
|
| Australia | Macquarie |
| China/Hong Kong |
China International Capital Corporation (CICC) |
| India | Kotak Mahindra |
| Indonesia | Mandiri Sekuritas |
| Japan | Nomura |
| South Korea | Samsung Securities |
| Taiwan | Chinatrust Commercial Bank |
|
LATIN AMERICA |
|
| Argentina | Bank of America Merrill Lynch |
| Brazil | Ita Unibanco Banco Mltiplo |
| Mexico | Banamex |
|
MIDDLE EAST |
|
| Bahrain | Unicorn Investment Bank |
| Egypt | EFG-Hermes |
| Israel | HSBC Bank |
| Jordan | Arab Bank |
| Kuwait | NBK Capital |
| Lebanon | BankMed |
| Oman | BankMuscat |
| Qatar | Qatar First Investment Bank |
| Saudi Arabia | SambaCapital |
| United Arab Emirates | Abu Dhabi Investment Company |
|
AFRICA |
|
| Nigeria | Standard Bank |
| South Africa | Standard Bank |
