FirstFT: investment bank fees exceed $ 100 billion due to M&A boom

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Investment banks reap save sums, with fees exceeding $ 100 billion in the first nine months of the year thanks to a rush in transactions.

Major Wall Street banks and major specialist advisers have benefited from the boom in mergers and acquisitions as well as the boiling capital markets. Fees for both are at the highest level since the records began two decades ago and have reached $ 60.6 billion since the start of the year, according to Refinitiv.

Lenders also earned $ 52 billion in underwriting loan and debt offers in the first nine months of the year, as companies rushed to lock in low rates.

Five US banks, led by JPMorgan Chase and Goldman Sachs, took the largest share of the $ 112.6 billion in commissions earned this year. The two Wall Street lenders are estimated to have collected a combined fee of $ 18 billion.

Thanks for reading FirstFT Americas and have a nice weekend. See you Monday – Gordon

Five other articles in the news

1. Democrats delay vote on infrastructure bill Congressional Democrats have postponed a decisive vote on Joe Biden’s bipartisan $ 1.2 billion infrastructure bill in the United States House of Representatives after a day of frantic negotiations. However, the House and Senate both passed a “rolling resolution” to fund the government for another two months and avoid a shutdown before midnight.

  • Go further: Is Joe Biden’s national agenda in danger of being torpedoed by divisions in his own party? James Politi and Lauren Fedor report on the prospects for agreement between progressives and moderates.

2. Facebook in a hurry to publish user research Senators on the U.S. Commerce Committee have urged Antigone Davis, Facebook’s global security chief, to release all of her internal research into how its products affect users, after a spate of revelations about the damage some of its platforms are causing vulnerable groups, including children.

3. Evergrande bonds snatched by troubled debt investors Struggling US debt funds are flocking to buy bonds issued by Chinese property developer Evergrande, betting Beijing will be forced to rescue the nation’s most indebted company.

4. US and EU could do ‘more and better’ on technological security US Secretary of State Antony Blinken called on the United States and Europe to improve information sharing on companies that pose a risk to national security. Representatives of the US government and the EU held a summit this week in Pittsburgh despite France’s efforts to have the meeting called off after being excluded from the Aukus security pact.

5. Zoom and Five9 drop $ 14.7 billion deal Zoom Video Communications’ offer to buy cloud software provider Five9 collapsed just weeks after the US Department of Justice raised national security concerns over the deal and shareholders were invited to vote against the takeover by a powerful proxy group.

Coronavirus digest

The day to come

Data The Institute of Supply Management Today is releasing its monthly report on manufacturing activity in the United States, and the Commerce Department is expected to release data on consumer spending for August.

Monetary Policy New York Federal Reserve Chairman John Williams and ECB Executive Board Member Isabel Schnabel speak at the event “Implications of Federal Reserve Actions in Response to the Covid-19 Pandemic », Organized by the Federal Reserve Bank of New York.

Dubai World Expo After a year of delay, Expo 2020 Dubai will kick off today. Participants will be required to present proof of vaccination or a negative Covid-19 test. It is expected to be one of the most significant in-person events since the start of the pandemic.

Join us October 7 and 8 for the Moral Money Summit Americas, debate money, regulation and how businesses can act more responsibly. Register now here to receive the Moral Money newsletter to your inbox.

What else do we read

Stagflation fears intensify With oil surging above $ 80 a barrel, global food prices a third more expensive than a year ago, and other commodities at decade-highs, investors say an inflationary surge longer than forecast coincides with a slowdown in growth – an old enemy known as stagflation.

Line graph of the annual% change in consumer prices showing that inflation has increased faster than expected in developed economies

Will the next web be built on Ethereum? Interest in the Ethereum blockchain has skyrocketed over the past year. Proponents claim it could be the platform for what has become Web 3.0, where a slew of decentralized apps could one day challenge Big Tech’s offerings. But fundamental questions remain as to whether Ethereum will be able to compete with more nimble rivals, writes Richard Waters.

The West is the author of its own weakness After 25 years, Philip Stephens writes his last column, and reflects on how the challenges for policymakers have evolved over this period. When his column appeared, “the world belonged to liberalism,” he wrote. Today, Western democracies are threatened by a lack of public confidence. “The public’s faith in democracy – in the rule of law and state institutions – rests on the perception that the system is at least leaning towards fairness,” he writes.

Taliban face reality Providing the administrative services that Afghans have become accustomed to is a daunting task in an era of economic collapse, withdrawal of Western financial support, and an exodus of expert administrators since the Taliban takeover. But there is one service that is both available and popular under Islamists: swift justice.

Algorithms could guide decisions – if they work Life is full of tough decisions. Who should be hired or fired? What marks should students receive on their exams? An increasingly popular solution is to delegate these decisions to a data-driven algorithm. But many of them have been trained on racist and sexist information, and it shows, writes Tim Harford.

To travel

The new 190-mile Aquarius Trail in Utah is touted by its creators as “The Greatest Cycling Adventure in the American West.” Tim Neville explores.

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