What if Goldman Sachs & J.P. Morgan merged together?
I know this sounds insane! But theoretically speaking what if Goldman Sachs and JP Morgan merged together?
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They'd form a larger bank.
No way! I couldn't guess that. I'm already regretting posting this topic.
Out of the topic, why your signature says: "what is a signature?" LOL
Jack, I don't know you but I already like you. Funny shit.
what response could you possibly be looking for here?
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.
Governmental regulations would not allow such big banks to merge.
Why not? I don't recall any specific regulation that prevents such a merger.
The regulation is called populist mass hysteria
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.
HIGHLY DILUTIVE TO GS PREFTIGE, BRO
They'd be called "GSJPMC&Co"
ROFL That would be fun to write
The advisors that would lead the merger would be able to retire after that one deal haha
The "too big to fail" crowd would have a field day...
It'd be the finance version of KD joining the Warriors and Morgan Stanley would be LeBron.
but then who is Westbrook?
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
They would make the neo-illuminati. New world order, brace yourself people.
LOL what?
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.
They would dominate the industry. It would be interesting to see one corporation dominating such an important sector.
oozing prestige, just oooozing
My theory is that they would re brand as one of (but not limited to) the following:
JP Goldman Chases Snacks & Co. & Co.
Prestige Worldwide (wide, wide, wide)
HYP
Goldman Chase & Co's Snacks
BetterThanMorganStanley
The Illuminati Club
My initial guesses would be #2 or #3
Oh my god I was literally ROFL.
Hahaha Number 6 is awesome dude LOL
Number 5 would be my best guess.
Both of them are already considered too big to fail, and that alone would prevent them from merging.
Piper would become a BB
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-dream-the-bank-merge…
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.
That's an answer I wanted to this topic, thank you for that.
Shit would be lit, fam.
This would be as implausible as Republicans and Democrats forming one party
They would become "Republocarts" if you know what I mean.
Nope I have to disagree, they would be demublicans.
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?
Nope, they give it to Evercore..
Synergies brah! And about 40,000 finance pros hit the street.
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.
I'll bet my money on Jamie.
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.
Wouldn't make sense for two Investment Banks to merge in theory..
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.
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.
They would form J.P. Sachs
The question is... What if Morgan Stanley merged with J.P. Morgan instead? The Morgans reunite will be great.
Two Morgans in a van.
They won't
I don't think they legally can.
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.
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.
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.
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).
A slew of posts about "Which are the most preftigious groups at JPMGS&Co.?"
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
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 ?
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.
@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.
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
this is good
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