The league tables, used to rank the big banks and serve as bragging rights for the merger advisors is out. Somewhat surprisingly, Goldman Sachs (NYSE: GS) leapfrogged to the front of the line. Goldman has advised on $392 billion worth of deals through the first three quarters of the year, edging out their closest rival JPMorgan Chase (NYSE: JPM) who recorded $344 billion worth of deals, according to data from Thomson Reuters.
While Goldman and JPMorgan surged, Citigroup (NYSE: C) stumbled. Plummeted may be a better word in fact. Citigroup fell to 10th place after having been in third place at the end of the third quarter last year. Citigroup lost some big name bankers last year, and is seeking to fill the stables once again. Recently, the firm recruited a team of energy bankers from UBS (NYSE: UBS) that should help the firm rebound in 2011. Citigroup spokespeople had no immediate comment on the bank’s performance.
Merger and acquisition activity this year adds up to $1.68 billion versus $1.46 billion in the first three quarters of 2009. Even though the Investment banks earn far more money in their trading and lending businesses than they do from advising on deals, they still attach great importance to their rankings in the underwriting “league tables.” The general belief is that these standings help drive other, more profitable, business opportunities their way.
