You are correct. The relevant citation is this. http://blogs.reuters.com/felix-salmon/2011/06/07/the-us-ipo-cartel/ http://blogs.reuters.com/felix-salmon/2011/0

You are correct. The relevant citation is this. http://blogs.reuters.com/felix-salmon/2011/06/07/the-us-ipo-cartel/ http://blogs.reuters.com/felix-salmon/2011/06/07/the-us-ipo-... On average, banks take about 7% of IPO proceeds due to a Wall Street cartel of underwriters.