What non-BB bank is closest to BB status?
Title.
I would like to hear some thoughts about what bank(s) are most likely to either break through the MM or EB status and join the BBs . I know not every bank has this goal in mind obviously but just wondering what banks could get there realistically
Comments ( 16 )
It'd be a big stretch for any of those to 1. become a huge global bank and 2. grow their balance sheet to BB level, even if inorganically
There's a reason you haven't seen "new" BBs in many years. Outside of a mega- merger like BofA / Merrill (which was a very unique situation, and this type of mega-deal would never be approved in today's environment), it's just implausible to grow that much in this regulatory environment.
Wells and RBC are likely closest to " BB " level but neither are global platforms and I don't see that changing materially
I'm sorry, but this question shows a complete misunderstanding of the sub-verticals within banking. "BB" is not like Tier 1 consulting or the top Big Law firms, where all competitors have the same business model. Bulge Bracket investment banking implies an end-to-end business model that includes financing, underwriting and advisory work. The "MM and EB" names you reference by and large don't offer the first two. It's not "oh not every bank has this goal", it's more like it's not a goal they have at all. Look at Evercore , they print more advisory business than some BBs but have no desire to begin offering financing. I suppose Guggenheim bough Millstein a while back, and I think that gave them the ability to underwrite, but they'll never be able to backstop a blue chip IPO the way MS can.
I did say that I know banks don't have this goal, what I am asking is if there are any banks close to hitting that BB rung. I am not mentioning prestige or anything like that, I am just curious which banks would be the least surprising to take a spot as a BB in the future. There haven't been many changes in a long time so I am curious if any banks would be classified as such in the future and if so, which ones.
EBs will never hit BB 'rung' because of what a BB means (full service)…
See, you're still missing the point: EBs and MMs are fundamentally different from full service banks, so they could never become a BB . It's like asking which of these football players at the combine will be the best player in the MLB.
Start here: what do you mean by BB rung and how would you envision a MM or EB achieving that rung.
You are a far more patient person than I am. I lost it at the Jefferies question lmao.
Wells, Jeff or RBC
Names coming to my Head are BNP or RBC . While both of them have their weaknesses in some regions. However, looking at their Corporate and Investment Bank they are working on a level where you would talk about a BB .
Wells is the first to come to mind. They have the balance sheet to be BB status (very similar balance sheet to Citi ).
With that said, I don't think they have global aspirations so by the classical BB terminology, I don't see them being a BB . After that, RBC comes to mind
the one that gives you an offer
Currently, the only situation I see in the market that would give rise to a new BB would be Wells Fargo acquiring a strong advisory firm similar to BofA/Merrill. But Wells definitely has 0 interest in that.
I'm sure they would if they could (they definitely have interest in growing out their IB under new management). But, probably won't happen because I don't see any decent Investment banks looking to be acquired
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