Why Banks Salivate Over Giant IPOs Like Snap’s

The video discusses the challenges and dynamics of IPOs on Wall Street, focusing on the low commissions banks earn from large IPOs like Facebook and Snap. It highlights the reasons banks still compete for these deals, such as meeting institutional demand, maintaining client relationships, and prestige. The video also addresses the decline in equity underwriting due to the rise of private capital and regulatory changes.

What factors contribute to the low commissions on large IPOs like Snap?

How does the competition among banks affect their willingness to manage IPOs?

What role does institutional demand play in the IPO process?

Discuss the significance of the prestige factor in Wall Street's IPO business.

What are the implications of the decline in equity underwriting fees for Wall Street firms?