Goldman Sachs, The Best of the Worst

A lot of people are eager to bid good riddance to 2008, but perhaps no group looks more forward to a fresh start in 2009 than dealmakers.

The global market for mergers and acquisitions took a beating in 2008, but Goldman Sachs maintained its spot atop the bruised and battered group, both in the U.S. and worldwide.

Total M&A volume declined by 31 percent during the year, according to preliminary data released by Thomson Reuters, ending five consecutive years of growth. The tough financing environment hurt merger activity in 2008, a year that saw more deals withdrawn than any other year on record.

Below Goldman, there were a few surprises in the M&A league tables. Morgan Stanley fell to number five in global advisory business from the number two spot it held since 2005. It was particularly hurt by the lack of any mega-deals in its roster.

J.P. Morgan and Citigroup took the number-two and number-three spots, respectively.

While bankers scrambled to win business on the few deals that did happen in 2008, they were also busy working on their own transactions. Bank of America took over Merrill Lynch and J.P. Morgan completed a number of transactions.

Of course, these league tables come with a giant asterisk, as the New York Times reports. The data includes announced deals, so some of the biggest deals behind the numbers have yet to actually close. More than half the deals done by Morgan Stanley and BNP Paribas are still being worked out.

by Megan Barnett