For those wondering who has the most prime brokerage assets, below is a table from agood readin todays. As shown, at the end of 2006, Morgan Stanley (NYSE:MS) had the most prime brokerage assets at $153 billion. Bear Stearns (NYSE:BSC) was ranked second at $136 billion, followed by Goldman (NYSE:GS), UBS AG (NYSE:UBS) and Credit Suisse (NYSE:CS).
One of the main reasons Bear failed is because a number of its large buyside clients pulled their money out of Bears prime brokerage and moved them to others. With word that Citadel, Renaissance and a number of other large hedge funds moved their money out of Bear, who knows how low Bears prime brokerage assets fell in recent weeks. With Bear priced at $2 a share, its pretty clear that its assets fell significantly.
Now with Bear out of the picture and JPMorgan (NYSE:JPM) running what is left of the assets, it means other brokerage firms have seen increases in their prime brokerage assets. You have to think that the brokers that are able to make it through this mess will end up in even better positions.