Masters of the universe strike back as dealmaking tops record $5 trillion

[Ghost Dog]

The masters of the investment banking universe have pushed the global corporate spending spree to $5.02 trillion (£3.37 trillion) in 2015 making it a record year.

That is bigger than the previous record of $4.81 trillion in 2007, immediately before the financial crisis struck.

The increase was driven by mega-mergers – there were 67 deals worth $10bn or more each, totalling $1.9 trillion, more than double the value seen in 2014.

The boom in large deals also helped make 2015 a record year for investment bankers. Goldman Sachs earned $2.6bn in revenues from mergers and acquisitions, taking 11.7pc of the all investment bank income from the deals. JP Morgan was next with $1.9bn, and Morgan Stanley placed third with $1.6bn of revenues...

/... http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/12071700/Masters-of-the-universe-strike-back-as-dealmaking-tops-record-5-trillion.html

What good, and what harm does such corporate consolidation do to the real economy?

[Gman]

1. The harm is the profit expectations for the acquired

And doing everything necessary to meet the expectations including layoffs, benefit cuts, wage cuts, H1B cheap employees, etc. the forces are invisible at thus level. We blame the lower levels of the acquired companies. They are ultimately only accountable to the Goldmans of the world.

[Jerry442]

2. If the MOTUs keep this up...

...Communism, with all its egregious flaws, will actually become the better alternative.