Investment Banks Are Coming Off a Tough Year: Can They Rebound in 2023?
It's been a tough year for investment banks like JPMorgan Chase (NYSE: JPM), Goldman Sachs (NYSE: GS), and Morgan Stanley (NYSE: MS). Nobody wants to go public in this market -- at least not with the conditions they've faced in the past year. Goldman Sachs recently announced it would lay off 3,200 workers as its investment bank division slumped.
Inflation, interest rates, and geopolitical uncertainty have all had a hand in creating an unfavorable environment for investment banks. In a hard-to-predict climate, companies are holding off on going public. But hope could be on the horizon -- here's what needs to happen for investment banks to bounce back soon.
It's been a challenging market that has far-reaching effects on companies raising money. The root of the problem is inflation and the Federal Reserve's actions to bring it down.
Source Fool.com
