Commentary: They're Investment Banks, Not LendersBy
Impossible. That's how Wall Street's investment banks first reacted to suggestions that corporations would force them to extend low-margin credit in exchange for getting more lucrative investment-banking business, such as leading their initial public offerings. Sure, some clients might throw scraps of business to commercial banks with investment banks in tow, such as J.P. Morgan Chase or Citigroup, in exchange for credit. But most corporations would prefer to rely on the Big Three investment banks--Goldman Sachs, Morgan Stanley Dean Witter, and Merrill Lynch--for strategic counsel on IPOs or mergers and acquisitions because of their expertise, not their balance sheets.
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