Obviously they have strengthened the institutional side of their business during the credit crisis as well as become the largest commercial bank by deposits. I don't know how many so called "rainmakers" JPMorgan has, but I wonder how they will be viewed going forward? Will they supplant Goldman as the next titan of Wall Street?
I feel Goldman's prestige has taken a hit this week when you look at the desperation they showed in the deal they gave Buffet.
I think this is a great deal for JPMorgan. They didn't have much of a retail presence out West, so this helps tremendously on that side. I'm not sure how this really affects their rep on the IB or M&A side of things, if at all.
I don't feel like Goldman took a hit in their prestige. It's not like they were soliciting themselves to everyone and their moms (as far as I know). They got capital from one of the savviest investors out there at a time when they were being penalized unfairly (in my opinion) for being a traditional independent investment bank.
I sort of think that Goldman will probably either half-ass a retail arm or acquire one just for the sake of appeasing investors, and once the markets sort of stabilize (whenever that is), they'll just divest it and get back to being Goldman.
With all of the bad mortgages/loans they also took in this deal, is it fair to say that JPM now how a lot riding on the passage of the rescue plan?
lol after credit card defaults start surfacing quickly ... its going to be bye bye banks in the US ...
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