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Meanwhile, former President Donald Trump has picked Sen. JD Vance of Ohio as his running mate. More than just a VP pick, Vance could be the heir apparent to Trump's MAGA empire.
In today's big story, we're looking at Goldman Sachs CEO David Solomon predicting the long-awaited return of M&A.
What's on deck:
But first, let's make a deal.
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The M&A drought that's kept investment bankers on the sidelines is on its last legs, according to Wall Street's top dealmaker.
Goldman Sachs' CEO David Solomon offered an optimistic view on the dealmaking landscape during the bank's second-quarter earnings calls on Monday, writes Business Insider's Reed Alexander.
Solomon said the bank is seeing a "backlog" of transactions, calling it the "early innings" of a turnaround for a sector that's been all but dead over the past few years.
If anyone would know about M&A's return, it's Goldman Sachs. The bank traditionally sits atop league tables ranking advisors of deals. Reed previously spoke to a dozen insiders about how Goldman bankers are raring to go after a tumultuous few years for the firm.
But even if Solomon's prediction is self-serving, that doesn't make it wrong. The bank's underwriting revenue rose 39% last quarter thanks to more leveraged finance. Translation: Private-equity firms, whose inactivity has been a big piece of the M&A slowdown, are borrowing cash in preparation to cut deals.
An M&A return isn't just good for bankers. The lack of deals has been a massive dam to the flow of the broader economy.
When dealmaking comes back, founders and early employees of startups can cash out and move on to fresh projects. Larger companies can make acquisitions that help them push into new areas.
The return of deals is one thing. Getting them done is something else entirely.
The last time M&A came back in a big way after a downturn was in the aftermath of the pandemic. By early 2021, junior bankers were burnt out from the onslaught of deals they were working on.
Goldman sat at the center of it. Some of the bank's young employees made presentations — How else do you expect a banker to communicate? — outlining their complaints to senior management, which eventually leaked and went viral.
A September rate cut and switch to a deal-friendly White House in November are near-term sparks that would set the industry off and running quickly again.
But the untimely death of a Bank of America investment banker in early May put Wall Street's working conditions back in the spotlight. So this time around, banks might look to AI for help.
Solomon said on Monday's call he sees AI helping "the factory of the business" by prepping info for clients.
That's the type of work that often falls to junior bankers. Analysts are responsible for building out presentations ahead of client meetings, during which more senior bankers lead.
While junior bankers might appreciate some help, it could ultimately spell trouble for them. The more work banks can farm out to generative AI, the less need they'll eventually have for them altogether.
The Insider Today team: Dan DeFrancesco, deputy editor and anchor, in New York. Jordan Parker Erb, editor, in New York. Hallam Bullock, senior editor, in London. Annie Smith, associate producer, in London. Amanda Yen, fellow, in New York.