What's the size of BB IBDs in the US?

Based on the most helpful WSO content, the size of Investment Banking Divisions (IBDs) within Bulge Bracket (BB) banks like Goldman Sachs (GS), Morgan Stanley (MS), JPMorgan (JPM), and Bank of America (BofA) is significantly larger compared to Elite Boutiques (EBs). A key difference lies in the staffing ratios and overall structure:

1. Staffing Ratios:

   • BBs typically have a higher ratio of juniors (analysts and associates) to Managing Directors (MDs). For example, many BB groups operate with 4-5 analysts and 2-3 associates per MD.
   • In contrast, EBs tend to have leaner teams with fewer juniors per MD, reflecting a more focused and specialized approach.

2. Broader Divisions:

   • BBs encompass not only M&A and coverage bankers but also other units like capital markets, lending, and sales & trading. This makes their IBDs much larger in scale and scope compared to EBs, which are more concentrated on advisory services.

3. Economic Environment Impact:

   • During recessions, BBs may face challenges due to their broader business lines, which include areas like commercial banking that might struggle in low-rate environments. EBs, on the other hand, often focus on restructuring (RX) work, which can thrive during downturns.

While exact headcount figures for BB IBDs are not disclosed in the context, the structural differences and broader business models highlight their significantly larger size compared to EBs.

Sources: Boutique vs. Bulge Bracket in a Recession, Boutique vs. Bulge Bracket in a Recession, https://www.wallstreetoasis.com/forum/investment-banking/how-ibd-makes-or-loses-money-and-why-that-matters-to-you?customgpt=1, Big4 M&A - An Explanation