I-Banks Emerge From the Storm: Street Sense

NEW YORK (TheStreet) -- To paraphrase Mark Twain, the death of brokers has been greatly exaggerated.

Yes, while the dirt was uncovered last year, the mudslinging in Washington was at its zenith, the investment bankers hung around through the mess, and are poised for a giant comeback -- albeit smaller, leaner and more efficient. Accused of being responsible for everything wrong with the economy and financial system -- and given the complexities and difficult situation from the financial mess last fall -- it's a miracle they survived, even in this form. Let's take a look at the majors one by one.

Goldman Sachs: The King

It is hard to argue with performance. Goldman Sachs (GS) has truly put itself on another level. Oh sure, the rumors and conspiracy theories are there...Government Sachs, the tools for the Feds, etc. The pure fact is the stock is up 200% or more since the low last fall. They have transformed into the biggest player in bond trading and continue to have solid footing in investment banking. Funds have a huge advantage with Goldman, and that won't change anytime soon.

Morgan Stanley: Forever Research

On their deathbed after the Lehman collapse, Morgan Stanley (MS) resurrected itself with a very prudent investment from Mitsubishi UFJ Financial (MTU). When it appeared nobody wanted to have anything to do with them, Morgan Stanley took the investment and it has paid off in spades. But, what intrigues me is the purchase of Smith Barney from Citigroup (C). Without much fanfare, Morgan Stanley had become the best and most reliable research outfit on the Street. No doubt, the other services it provides are moneymakers, but this move put them well above the rest.