Goldman: Goldman Sachs still rules the roost on dispensing M&A advice. Despite a Securities and Exchange Commission fraud lawsuit - and plenty of bad press - the firm advised on more corporate marriages around the world than any other bank in the second quarter, according to Thomson Reuters.
But shareholders shouldn't breathe easy just yet. Deals typically take a few months to get done - often an adviser is hired a year before an announcement. It's the business the firm is - or isn't - winning right now that will determine whether it stays dominant.
Even though trading is where Goldman has made the majority of its money over the past decade, giving mergers and acquisitions advice remains the cornerstone of Goldman's client franchise. And, keeping the top spot in league table rankings is the crucial talking point in the bank's claim to lead the pack.
This quarter, Goldman advised on $190 billion worth of deals across the globe.
The biggest ones included Coca-Cola's $13-billion purchase of its bottling business, Coca-Cola Enterprises and oil services contractor Schlumberger's $12-billion take down of American rival Smith International. Morgan Stanley and JPMorgan ranked next, working on $173 billion and $169 billion of transactions, respectively.
Goldman's good showing came even as the firm has raced to rescue its reputation. First, the firm faced public accusations that it survived the financial crisis thanks largely to taxpayers, only to pay its employees handsome bonuses. Now it's defending itself against SEC charges that it fraudulently sold a collateralized debt obligation that soured.
That these negative headlines do not appear to have impeded Goldman's progress in an area it regards as critically important is a good sign for shareholders. They shouldn't grow too comfortable. The full force of the bank's reputational problems may not appear in league tables for another quarter or two. A fall from the top is still possible.
