Wealth magazine: Wall Street Rich richer

Lead: 15th "Fortune" published a commentary, said, because many banks in order to repay TARP loans have issued shares, so that Goldman Sachs, Morgan Stanley and JP Morgan and other large brokerages to earn huge underwriting fees.　　The rush to repay the government's bailout loans has left Wall Street's other institutions with a bonanza.　　A week after regulators released the results of bank stress tests, 6 large financial institutions have developed plans to raise funds by issuing shares. The banks that plan to raise money want to take advantage of the recent rally in the stock market.　　They have also been supported by investors who should be happy to see them bid farewell to the Treasury's Troubled Asset Relief Program (TARP). The desperate desire to get rid of tarp is a lucrative underwriting charge for America's three biggest brokerages, Goldman Sachs, Morgan Stanley and JPMorgan's JP Morgan division.　　The bank's fund-raising efforts are largely entrusted to them. This week Goldman Sachs and Morgan jointly underwritten the 2.5 billion-dollar equity offering for U.S Bancorp, underwriting a 1.2 billion-dollar issue for the bank's New York Mellon. In addition, the three brokerages also jointly underwrite 1.5 billion dollar shares for Bb&t. Bb&t and U.S.　　Bancorp and Bank of New York Mellon passed the stress tests, but wanted to pay off the tarp immediately. U.S. Bancorp paid an underwriting rate of 2.65%, with a smaller bank of New York Mellon and a bb&t rate of 3%, so big Wall Street banks could put tens of millions of dollars into the bag.　　According to Dealogic, the total handling costs of the 3 deals amounted to $147 million, which were shared by underwriters and other banks that helped sell shares. But while Goldman Sachs and Morgan Stanley have been quite active, they have missed out on America's biggest share-issuing deal this year: The 8.6 billion-dollar issuance of Wells Fargo in the Friday.　　The total cost of the deal to the underwriting bank amounted to $200 million, which was run by JP Morgan and the rich-world U.S.-affiliated department.　　But with regulators asking 10 big banks to raise 75 billion of dollars in common equity, the banks clearly have more opportunities to underwrite deals in the weeks ahead. But even if underwriting deals boost the performance of big financial institutions in the second quarter, the entire investment banking business is still quite sluggish compared to unscrupulous bubbles.　　In Goldman Sachs, for example, equity underwriting income fell 72% in the first quarter, just 48 billion dollars. As long as mergers and acquisitions remain sluggish, investment banks will continue to struggle. But some observers expect mergers and acquisitions to flourish as soon as the economy really recovers.