Squeezing Hedge Funds Is Path to Profit at Three Big Banks
- Morgan Stanley, Goldman Sachs, JPMorgan market share climbs
- Citigroup, Bank of America post drop in stock-trading revenue
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In the battle for supremacy on Wall Street’s equity trading desks, the most successful banks are dangling a precious resource in front of hedge-fund clients: a balance sheet.
Morgan Stanley, Goldman Sachs Group Inc. and JPMorgan Chase & Co. grabbed a bigger share of the market last quarter by forcing hedge funds hungry for financing to send more stock-trading business their way. The three firms booked $5.1 billion from equities in the third quarter, or 76 percent of the total posted by the five largest U.S. investment banks, according to their financial statements. That was the most for the period since 2012.