M&A Bankers Suffer Drop In Fees

Bloomberg is reporting that M&A Advisory fees have fallen about $8.7 billion in Q1 2008 from $13.4 billion during Q1 2007. Goldman Sachs, the leader in M&A, has reported a 47% decline in fees from Q4 2007 to Q1 2008. Given potential lower trading returns (due to the market and less hedging/shorting of subprime as with last year), Goldman could have a more challenging year, even without the exposure and write downs some other banks are taking. Nonetheless, it may still be better position. The stock itself is testing support (double bottom), so we should get some clarity shortly.

Ticker: GS