Wall Street’s deals rebound is missing something

DEALMAKING is back! At least that’s what it looks like after the big five US investment banks reported a 27 per cent increase in first-quarter fees from mergers, takeovers and fundraising compared with the same period last year. But beneath the surface, the recovery is patchy and the bullish outlook of many Wall Street executives relies on private equity firms getting back into the game.

Bank of America saw the strongest rebound with investment banking revenue up 35 per cent versus the first quarter last year, it said on Tuesday (Apr 16). Morgan Stanley, which also reported on Tuesday, had the weakest growth of the five, but its fees were still 16 per cent better than last year.

Citigroup, Goldman Sachs and JPMorgan Chase, which all reported earlier, also saw growth after nearly two years of depressed activity.