Wall Street bosses cheer investment banking gains but stay cautious

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Morgan Stanley Notícia

Investment Banking,Capital Markets,Goldman Sachs

Wall Street's bosses are finally seeing signs of a broader pickup in investment banking, but they are not cheering too loudly just yet. Investment banking...

Wall Street bosses cheer investment banking gains but stay cautiousNEW YORK - Wall Street's bosses are finally seeing signs of a broader pickup in investment banking, but they are not cheering too loudly just yet.

"We're just happy to see the investment banking activity improve," BofA's finance chief Alastair Borthwick told journalists. He cited efforts to deepen is presence in middle markets and boost collaboration between corporate and commercial bankers. "We are cautiously optimistic that we could see a measured reopening of the IPO market in the second quarter," Citigroup CEO Jane Fraser told analysts on Friday.

At JPMorgan, Chief Financial Officer Jeremy Barnum also struck a cautious note even as investment banking revenue climbed 27% to $2.0 billion. Goldman's Solomon expects private equity firms, or financial sponsors, to get more involved in deals in an effort to start returning capital to investors.Citigroup shares are up nearly 11% so far this year, outpacing peers including JPMorgan and Bank of America, which have gained 6% and 3%, respectively. Goldman shares have risen 3%, contrasting with a 3% decline for Morgan Stanley. The S&P 500 banks index has climbed 6%.

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