McKinsey Study: Future of Bulge Bracket

Ran into an article about a McKinsey study a few months old but interesting: http://www.bloomberg.com/news/2013-01-23/wall-stre...McKinsey-says.html

Only five or six companies will remain "bulge bracket" firms that offer all investment banking and trading products worldwide, the consulting firm said today in a report titled "After the Reckoning." Others will step back from some businesses to focus on areas where they have a competitive advantage, according to the report.

"There are more aspiring flow monsters than projected levels of flow can support," McKinsey analysts said in the report. "We have already seen a few early movers exit capital- intensive fixed-income businesses or scale-intensive cash equities businesses to focus on areas where they were better able to compete; we will see more such moves in the future."

Also, this article has a pretty wide definition of Bulge Bracket:

The 13 firms addressed in the report were Bank of America Corp., Barclays Plc, BNP Paribas SA, Citigroup Inc., Credit Suisse Group AG, Deutsche Bank AG, Goldman Sachs Group Inc., HSBC Holdings Plc, JPMorgan Chase & Co. (JPM), Morgan Stanley, RBS, Societe Generale SA and UBS. Those firms accounted for about 60 percent of the $292 billion of investment banking and trading revenue in 2011, according to the report.

What do you guys think, and if you were to pick 6 banks which ones would they be?

Comments (13)

Mar 14, 2013

wheres the actual report?

Mar 14, 2013

I'm not sure if that was released to the public. Closest one I can find is this: https://www.mckinseyquarterly.com/files/article/PD...

Mar 14, 2013

Who cares?

Lazard is better than all of those.

Mar 14, 2013

In for dick measuring contest

Mar 14, 2013

my top 6: Bank of America Corp., Citigroup Inc., Deutsche Bank AG, Goldman Sachs Group Inc., JPMorgan Chase & Co. (JPM), Morgan Stanley,

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Mar 14, 2013

^

Mar 15, 2013

GS / MS / JPM / CS / DB .... conflicted about the last choice, between Barclays, Bofa and Citi as they all have huge balance sheets

To the starving man, beans are caviar

Mar 15, 2013

MS seems to be agreed upon but what about their trouble in FICC?

Mar 15, 2013

gs, ms, baml, jpm, DB, cs

barcap maybe, maybe hsbc for emerging markets?!?

Mar 15, 2013

McKinsey also conducted research on how unsuccessful mergers are at capturing synergies. They said at most, a merger can ad 2% value. Yet, they advised on the HP/Compaq deal (synergies, integration) and were quoted in the proxy for proposing an estimated 2 B in savings from the transaction.

Take these articles at face value - they send this crap out all the time to stay in front of their clients as a "thought leader".

- I worked at MBB. Utter bull-crap.

Mar 16, 2013
bankbanker101:

McKinsey also conducted research on how unsuccessful mergers are at capturing synergies. They said at most, a merger can ad 2% value. Yet, they advised on the HP/Compaq deal (synergies, integration) and were quoted in the proxy for proposing an estimated 2 B in savings from the transaction.

Take these articles at face value - they send this crap out all the time to stay in front of their clients as a "thought leader".

- I worked at MBB. Utter bull-crap.

nvm...you worked at MBB. my b lol

Mar 16, 2013
Goldenglobe:

Ran into an article about a McKinsey study a few months old but interesting: http://www.bloomberg.com/news/2013-01-23/wall-stre...

Only five or six companies will remain "bulge bracket" firms that offer all investment banking and trading products worldwide, the consulting firm said today in a report titled "After the Reckoning." Others will step back from some businesses to focus on areas where they have a competitive advantage, according to the report.

"There are more aspiring flow monsters than projected levels of flow can support," McKinsey analysts said in the report. "We have already seen a few early movers exit capital- intensive fixed-income businesses or scale-intensive cash equities businesses to focus on areas where they were better able to compete; we will see more such moves in the future."

Also, this article has a pretty wide definition of Bulge Bracket:

The 13 firms addressed in the report were Bank of America Corp., Barclays Plc, BNP Paribas SA, Citigroup Inc., Credit Suisse Group AG, Deutsche Bank AG, Goldman Sachs Group Inc., HSBC Holdings Plc, JPMorgan Chase & Co. (JPM), Morgan Stanley, RBS, Societe Generale SA and UBS. Those firms accounted for about 60 percent of the $292 billion of investment banking and trading revenue in 2011, according to the report.

What do you guys think, and if you were to pick 6 banks which ones would they be?

Societe Generale is not one I'd ever consider.

Mar 18, 2013
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