Boutiques, top firms co-exist in restructuring business

TheDeal.com notes that investment bankers were once precluded by law from representing a client company in bankruptcy court. That left much of the restructuring business to boutiques, who continue to dominate. In 2005, the law restricting bankers was amended by the Bankruptcy Reform Act. Are top Wall Street firms now ready to assert themselves in what looks to be a lucrative market? It's fair to say they all have staffed up. Morgan Stanley, Goldman Sachs and Lehman Brothers are among those who positioned themselves a bit better. But TheDeal.com notes that there's a high level of cooperation between boutiques and banks. The smaller advisory firms turn to the big banks for financing and other services. And the law still prevents a firm from being both a bankruptcy adviser and an underwriter. Most banks are really interested in the capital-raising angle.  

For more:
- here's the article from TheDeal.com

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