The banks have two sets of clients to appeal to. The Investment Bankers have corporate clients to keep happy. In 2000 companies were happy for the big 2x IPO

The banks have two sets of clients to appeal to. The Investment Bankers have corporate clients to keep happy. In 2000 companies were happy for the big 2x IPO day pops. Now they realize this is very expensive PR. On the other hand, their Institutional Sales has to keep all the Mutual Funds happy. Fidelity will forgive one misplaced IPO, but not a stream of them. If a bank can't sell to mutual funds, they won't get new mandates from corporations. Banks have to walk a thin line to keep both sides happy. (Of course they get paid well when they do it right)