Since goldman and Morgan are now regular banks what will happen to IPO's

Discussion in 'Wall St. News' started by magnum29464, Sep 22, 2008.

  1. How will companies issue stocks to the public? Will this change the whole offering process? I guess no more big commissions for the I-banks issues stocks. Maybe the government will issue stock now...

  2. Bank Of America, JP Morgan Chase both do deals.
  3. oh damn, didn't even think of that....

    So there's really nothing about stock offering that's only native to investment banks?
  4. not too sure what you are asking...but there are many many underwriters in a typical IPO offering. In most cases, the lead underwriters are I-banks, but regional banks(and sometimes even online banks) are part of the syndicate group. I suppose things won't change as far as IPOs.
  5. Yea that answers my question. I just didn't realize so many institutions were involved in underwritting because most of the deals I read about involved the major investment banks so I guess I assumed on some level it was an I-bank function instead of just a bank function..

    And I guess its safe to assume they will continue to provide underwritting services...
  6. I am concerned as well... The best deals come from Independent Investment Banks. Remember VMware? That was a Bank IPO. Look at how many investors lost their shirts.

    The Fed needs to preserve the independence of these banks or we'll never get out of this mess.
  7. At the end of the day, when everything is said and done, I'm pretty damn sure the Fed will quietly let these two return to their previous status as investment banks.
  8. The enforced seperation between commercial and investment banks was scrapped some time ago.