Goldman and JPMorgan pivot to M&A as Covid trading boom fades

Goldman and JPMorgan pivot to M&A as Covid trading boom fades

Be the first to know about every new Coronavirus story

JPMorgan Chase and Goldman Sachs are benefiting from a boom in dealmaking activity just as trading revenues plunge from the record levels during the early stages of the Covid-19 pandemic.

Both Wall Street banks on Tuesday reported a surge in fees from advising on corporate acquisitions and initial public offerings during the second quarter, helping to offset declining returns from bond and stock trading.

JPMorgan announced record global investment banking fees of $3.6bn, while Goldman's fees of $3.6bn were just shy of the record $3.7bn earned in the first three months of 2021.

David Solomon, Goldman's chief executive, said the bank was braced for a record deal backlog in a sign of more M&A to come. He said the boom was being driven by a desire for scale and confidence about the recovery among chief executives, as well as a push by companies to digitise their businesses.

"Obviously, if there was some sort of a disruption or an economic slowdown sometime in the future, that would wear on confidence and slow that, but that doesn't seem likely given where we are positioned today," Solomon said during a call with analysts on Tuesday.

His comments were echoed