I don't really think that one can answer that question. It is pretty widely accepted that Goldman is *the* I-Bank. As for a comparison between Merril's and Goldman's earnings and revenue, its hard to say. Goldman's partnership allowed it to enjoy $3.01 billion in pre-tax profit last year, that is pretty incredible for a firm of only 11,000 people. Plus, as a private firm, they do not pay corporate taxes in the normal sense, their partners do. Merril is the big boy of Wall Street by sheer size. It is a profit machine as well, but it's business is far larger that Goldman's, you've got to realize -- Goldman has no real retail business, only high net worth individuals.
So, in essence, I guess the answer to your question would be that by revenue, Merril is #1, but by profit, I'm not sure anyone beats Goldman down on Wall Street.
Once public, though, I wouldn't be surprised if Goldman makes a move to buy a retail brokerage in order to broaden itself out a bit, though that is purely speculation on my part, and should not be seriously considered. There is no doubt that Goldman is looking to expand. They just purchased, or took out a long term lease on 2 Broadway in Manhattan -- a behemoth of a building. That to me is a sign that they want to acquire, not be acquired.
I can't wait for the IPO, and I'm buying a truck to fill up with shares when the day occurs.
Good luck,
geoff |
