LARGE COMMERCIAL BANKS WILL likely pose a growing threat to big investment banks, although the latter can survive with strong management and close attention to asset quality, Standard & Poor's says.
The credit rating agency appeared to hew closer to the position of Philip Purcell, chief executive of Morgan Stanley, in his public spat last week with Bank of America Corp CEO Kenneth Lewis over whether commercial banks such as Bank of America have the better business model.
Commercial banks are thought to benefit from deeper capital resources, which let them extend low-cost loans or credit lines to help win more lucrative stock and bond business.
As commercial banks become "a greater threat ... we continue to believe that asset quality is going to be the primary driver of banks' health," said Barry Hancock, an S&P managing director, at S&P's global banking conference.
"Tough market conditions increase the importance of good management."
US commercial banks such as No 1 Citigroup Inc, No 2 J.P. Morgan Chase & Co and No 3 Bank of America have used lending to boost market share at the expense of Morgan Stanley, Goldman Sachs & Co, Merrill Lynch & Co and others.
Among 14 large global banks tracked by Thomson Financial, Morgan Stanley, Goldman Sachs and Merrill Lynch lost the most bond and equity underwriting market share between 1998 and 2002--a respective 2.57, 3.75 and 4.58 percentage points.
WILL likely pose a growing threat to big investment banks, although the latter can survive with strong management and close attention to asset quality, Standard & Poor's says.
The credit rating agency appeared to hew closer to the position of Philip Purcell, chief executive of Morgan Stanley, in his public spat last week with Bank of America Corp CEO Kenneth Lewis over whether commercial banks such as Bank of America have the better business model.
Commercial banks are thought to benefit from deeper capital resources, which let them extend low-cost loans or credit lines to help win more lucrative stock and bond business.
As commercial banks become "a greater threat ... we continue to believe that asset quality is going to be the primary driver of banks' health," said Barry Hancock, an S&P managing director, at S&P's global banking conference.
"Tough market conditions increase the importance of good management."
US commercial banks such as No 1 Citigroup Inc, No 2 J.P. Morgan Chase & Co and No 3 Bank of America have used lending to boost market share at the expense of Morgan Stanley, Goldman Sachs & Co, Merrill Lynch & Co and others.
Among 14 large global banks tracked by Thomson Financial, Morgan Stanley, Goldman Sachs and Merrill Lynch lost the most bond and equity underwriting market share between 1998 and 2002--a respective 2.57, 3.75 and 4.58 percentage points.
WILL likely pose a growing threat to big investment banks, although the latter can survive with strong management and close attention to asset quality, Standard & Poor's says.
The credit rating agency appeared to hew closer to the position of Philip Purcell, chief executive of Morgan Stanley, in his public spat last week with Bank of America Corp CEO Kenneth Lewis over whether commercial banks such as Bank of America have the better business model.
Commercial banks are thought to benefit from deeper capital resources, which let them extend low-cost loans or credit lines to help win more lucrative stock and bond business.
As commercial banks become "a greater threat ... we continue to believe that asset quality is going to be the primary driver of banks' health," said Barry Hancock, an S&P managing director, at S&P's global banking conference.
"Tough market conditions increase the importance of good management."
US commercial banks such as No 1 Citigroup Inc, No 2 J.P. Morgan Chase & Co and No 3 Bank of America have used lending to boost market share at the expense of Morgan Stanley, Goldman Sachs & Co, Merrill Lynch & Co and others.
Among 14 large global banks tracked by Thomson Financial, Morgan Stanley, Goldman Sachs and Merrill Lynch lost the most bond and equity underwriting market share between 1998 and 2002--a respective 2.57, 3.75 and 4.58 percentage points.
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