IPO lull takes toll on Street; Fewer deals mean lower profits; bigger declines could be ahead.(fewer initial public offerings hurts Wall Street)

Crain's New York Business, June, 2000 by gandel, stephen

The collapse of the market for initial public offerings could cost Wall Street as much as $3 billion in revenue and reduce profits sharply. Investors fearful of the outlook for the industry have already sent the Standard & Poor's investment bank index down 14% from the beginning of April. Analysts are cutting their estimates for second-quarter profits and say Credit Suisse First Boston and Goldman Sachs Group Inc.

are among those expected to be hit hardest. ``It's going to be a disappointing quarter, and the stocks are already reflecting that,'' says Michael Holland, chairman of money manager Holland & Co. A few experts say fears of a significant downturn in Wall Street profits are overblown. Securities firms are far more diversified than they were just a...

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