Comments (68)

Best Response
Oct 8, 2016

They'd form a larger bank.

    • 16
Oct 8, 2016

No way! I couldn't guess that.
I'm already regretting posting this topic.

What is a Signature?

    • 15
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Oct 10, 2016

Out of the topic, why your signature says: "what is a signature?"
LOL

Oct 15, 2016

Jack, I don't know you but I already like you. Funny shit.

Oct 8, 2016

what response could you possibly be looking for here?

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Oct 8, 2016

Theoritical responses? This is the right forum to post such a topic... Right? Becuase it clearly says wall-street, this question is interesting for those who are interested in it, but thanks for the extra reply anyway.

What is a Signature?

    • 20
    • 5
Oct 8, 2016

Governmental regulations would not allow such big banks to merge.

    • 1
Oct 10, 2016

Why not? I don't recall any specific regulation that prevents such a merger.

    • 1
Oct 10, 2016

The regulation is called populist mass hysteria

    • 2
Oct 10, 2016

Riegle-Neal Interstate Banking and Branching Efficiency Act institutes a deposit cap.

A bank holding company could not control more than 10 percent of the nation's total deposits, or 30 percent of any single state's total deposits, unless a state elected to establish its own deposit cap above or below this 30 percent limit.

JPM is already above 10 percent threshold. Banks can grow organically above 10% threshold but can't merge if the combined threshold >10% percent.

    • 2
Oct 8, 2016

HIGHLY DILUTIVE TO GS PREFTIGE, BRO

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Oct 9, 2016

They'd be called "GSJPMC&Co"

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Oct 10, 2016

ROFL
That would be fun to write

    • 1
Oct 9, 2016

The advisors that would lead the merger would be able to retire after that one deal haha

    • 2
Oct 9, 2016

The "too big to fail" crowd would have a field day...

    • 1
Oct 9, 2016

It'd be the finance version of KD joining the Warriors and Morgan Stanley would be LeBron.

    • 9
Oct 10, 2016

but then who is Westbrook?

Oct 10, 2016

Citi - Right there on the cusp of being an elite (top 3) player but than in crunch time you see him shoot that 30ft 3pt shot with 20 seconds still left in the shot clock and you can only shake your head in shame

    • 4
Oct 10, 2016

They would make the neo-illuminati.
New world order, brace yourself people.

    • 1
Oct 10, 2016

LOL what?

What is a Signature?

    • 1
Oct 10, 2016

This is like asking what would happen if Mars crashed into Earth. You don't need to post on an astronomy board to come to the conclusion that it is just a dumb question.

Oct 10, 2016

They would dominate the industry.
It would be interesting to see one corporation dominating such an important sector.

Oct 10, 2016

oozing prestige, just oooozing

WSO's COO (Chief Operating Orangutan) | My Linkedin

    • 1
Oct 10, 2016

My theory is that they would re brand as one of (but not limited to) the following:

  1. JP Goldman Chases Snacks & Co. & Co.
  2. Prestige Worldwide (wide, wide, wide)
  3. HYP
  4. Goldman Chase & Co's Snacks
  5. BetterThanMorganStanley
  6. The Illuminati Club

My initial guesses would be #2 or #3

    • 6
Oct 11, 2016

Oh my god I was literally ROFL.

What is a Signature?

    • 5
    • 1
Oct 11, 2016

Hahaha Number 6 is awesome dude LOL

Oct 11, 2016

Number 5 would be my best guess.

Oct 15, 2016
BatemanBatemanBateman:

My theory is that they would re brand as one of (but not limited to) the following:

1. JP Goldman Chases Snacks & Co. & Co.

2. Prestige Worldwide (wide, wide, wide)

3. HYP

4. Goldman Chase & Co's Snacks

5. #BetterThanMorganStanley

6. The Illuminati Club

My initial guesses would be #2 or #3

The (wide, wide, wide) part gets me every damn time I hear it.

    • 1
Oct 10, 2016

Both of them are already considered too big to fail, and that alone would prevent them from merging.

Oct 10, 2016

Piper would become a BB

    • 1
Oct 10, 2016

@JackTheBad to give you a serious answer, as others have mentioned if the DOJ doesn't attempt to block this (even if both firms sell large amounts of assets or divisions) the MSM and or SJW/anti-Wall Street crowd would go absolutely bananas and create such a backlash that any politician that is remotely ok with this will probably wind up committing political suicide.

Bloomberg did have a good article on plausible bank mergers that I recommend you and others read: www.bloomberg.com/news/articles/2016-07-08/dare-to...

I don't know enough about the industry to ascertain if the above is possible or even makes sense but they do make some good arguments for mergers in the banking industry.

Oct 11, 2016

That's an answer I wanted to this topic, thank you for that.

What is a Signature?

    • 6
Oct 10, 2016

Shit would be lit, fam.

    • 2
Oct 11, 2016

This would be as implausible as Republicans and Democrats forming one party

Oct 11, 2016

They would become "Republocarts" if you know what I mean.

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Oct 11, 2016

Nope I have to disagree, they would be demublicans.

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Oct 11, 2016

The real question is who does GS select as it's sell-side advisor? Obviously MS is a logical front-runner, but do you want to give your biggest competition that chunky of a fee?

Oct 11, 2016

Nope, they give it to Evercore..

Oct 11, 2016

Synergies brah! And about 40,000 finance pros hit the street.

Oct 11, 2016

Lloyd Blankfein and Jamie Dimon would have a jousting match down the center of Wall Street to see who would remain Chairman & CEO and who would be downgraded to the lowly position of COO.

Oct 11, 2016

I'll bet my money on Jamie.

What is a Signature?

    • 2
Oct 11, 2016

Blankfein is a short little guy and therefore a smaller target, more elusive. However, Dimon is of Greek descent and therefore has ancestral ties to the Spartans, who were experts with spears. I'm going with Dimon as well.

    • 1
Oct 11, 2016

Wouldn't make sense for two Investment Banks to merge in theory..

Oct 11, 2016

@TippyTop11 not trying to argue semantics but isn't GS a full-service IB whereas JP Morgan is more of a money center bank/retail (deposit focused)?

If it weren't for there sheer size and public scrutiny I would imagine a merger wouldn't be out of the realm of possibility? I don't know how big Lehman or Bear were at the time but I imagine if GS was around their size it could be possible.

Oct 15, 2016

Today's investment banks are results of mergers.

Which isn't to say this proposed merger isn't a stupid prospect because it obviously is.

Oct 14, 2016

They would form J.P. Sachs

Oct 14, 2016

The question is... What if Morgan Stanley merged with J.P. Morgan instead? The Morgans reunite will be great.

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Oct 15, 2016

Two Morgans in a van.

Oct 14, 2016

They won't

Oct 14, 2016

I don't think they legally can.

Oct 15, 2016

G-SIBs are subject to the higher Core Capital requirement. JPM is already high up there and the merger would be imposed stricter requirement due to their size. This would significantly reduce their operations and profitability.

Oct 15, 2016

the duty for these two big investment corporate are totally different. GS is more global business, JP is more focus on small client. If they are going to merge together, I think it would screw up.

English man in WSO, fresh off the boat.

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Oct 15, 2016

Why would they even merge? I doubt the government would allow for two large banks to merge in a time of non crisis.

If by some chance it did happen they'd create a very large bank. This bank, in turn, would be a super dominate force in the markets.Chances are it would change the face banking around the world and would force the mergers of more banks creating "super" bank as the only way to compete. But again various government agencies wouldn't allow for this in a time of non crisis.

I'm not a real banker though...

    • 1
Oct 15, 2016

What if Pakistan and India stopped hating each other and merged back into one country? What would happen if America returned to centrist common sense politics? What would happen if we stopped having an insanely large and harsh judicial system? All the possibilities above have a higher chance of happening then JPM and GS merging into one company (maybe not India/Pak but still).

Oct 17, 2016

A slew of posts about "Which are the most preftigious groups at JPMGS&Co.?"

This part of my life. . .is called "Running"

Oct 18, 2016

It would be impossible to get an internship probably have to be 1% of ivy with your own ipo'd start up and your great great great grandfather would be JPM himself

Oct 18, 2016

I am very disappointed with the answers.

Well done guys for pointing out the obvious that it is not going to happen and that the government would not allow it anyhow- you guys are very smart and real legends.

But are you capable of thinking further than that , in a fictional scenario what would it mean for other banks, customers , finance in general ?

    • 2
Oct 18, 2016

@GS_ER given the nature of this board (I'm generalizing here) I don't think anyone should be surprised at the answers given because the likelihood of something like this even happening are slim to none.

The world economy would need to be in the gutter (something that makes 2008 Financial Crisis look like child's play) in order for anyone to even entertain an idea of GS and JPM merging or one acquiring the other.

To answer your post, some users did lay out good explanations for why this wouldn't make sense such as @marthcantip and many others.

Oct 18, 2016

@GS_ER I'm sorry you can't imagine something so incredibly basic. The answer you're looking for falls in line with something like what if Goku fought Superman who would win. It's dumb because:
A). It's never happening
B). Fanboys will cry that Actually Goku would transform into Super Saiyan God while Superman is somehow stronger.
C). Who cares

Why did you even make this topic. This should have been a thought experiment.

I'm not a real banker though...

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Oct 18, 2016

Elizabeth Warren would renounce her US citizenship and likely move to Canada, probably forcing her to be no longer eligible for the credit union she almost certainly uses for personal banking now

Oct 21, 2016

this is good

Oct 20, 2016
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