Investment Banks Prepare for Lean Times as Deal Spree Sputters

Wall Street’s latest deal-making boom began to weaken in 2022. The industry is set for a slowdown to drag into the second half of the year.

Incentives from governments and central bankers in response to the pandemic led to a recession and a rapid recovery in capital markets. That recovery, along with changes in the way customers and businesses operate, sent executives on a shopping spree for deals. Many startups went public.