Goldman Sachs’ third-quarter profit—Lloyd Blankfein’s last—rose 19%. Morgan Stanley’s is up 20%. Bank of America’s? 32%! A victory lap for the ever-beleaguered Brian Moynihan? Where’s the fun in that? Let us instead study one of his many, many flaws on this otherwise sunny day for Wall Street’s favorite hapless Irish dad.
Bank of America has failed to capture the benefits of a deal-making boom that has lifted its Wall Street rivals. Its overall investment-banking revenue in the first nine months of this year is roughly flat compared with the same period in 2010, compared with an average increase of more than 50% at U.S. peers including Goldman Sachs Group Inc. and JPMorgan Chase & Co.
Bank of America makes far more on service charges such as overdraft fees than from merger and underwriting work, and the investment bank has never contributed more than 7% of the company’s overall revenue.
Sick burn, Journal. Give us more. We live for the BriMo hate.
It is eighth in U.S. merger revenue this year, behind Jefferies Financial Group LLC and Barclays PLC, according to Dealogic. It also has slipped in debt businesses it has dominated for years.
Twenty-eight managing directors have left the investment bank for competitors since the beginning of 2017, according to a report by recruiting firm Sheffield Haworth. Only Deutsche Bank AG has seen more departures at that level.
Just call it Amerikanische Bank, because Charlotte may be the only major bank headquarters city that sucks more than Frankfurt.
Bankers grumbled that Mr. Moynihan, who lives outside Boston, seemed less interested in getting personally involved in deals than his counterparts at JPMorgan or Goldman Sachs.
Again: Charlotte. Can you blame him?
Christian Meissner, who oversees investment banking as well as corporate banking, will leave at the end of this year, the bank announced in September…. Unlike other top executives, including Bank of America’s head of human resources, Mr. Meissner didn’t have ready access to the firm’s private planes.
That seems like a sensible pecking order for, you know, a bank.
Bank of America Is Missing Out on Wall Street’s Boom [WSJ]
Bank of America Profit Jumps 32% [WSJ]
Morgan Stanley profit jumps 20% [MarketWatch]
Goldman Sachs Rides Deals to Improved Revenue, Earnings [WSJ]