![]() “Pride runs deep,” said Matthew Czepliewicz, banks analyst at Collins Stewart.Įven some of the least profitable business, like lending to big companies, usually done at low rates to lure clients into handing over more lucrative appointments in future, are hard to chop out as banks fear burning their bridges with customers. Drastic decisions taken this year would dash years of expansion plans and be very hard to reverse. Many still harbour ambitions to keep a grip on as many markets as they can, with an eye the profits they fear they will miss out on in an upturn. However, few - bar RBS, which is pulling out entirely from most of its equities businesses and from mergers and acquisitions - have so far opted for a full-blow retreat. UBS and its Swiss peer Credit Suisse have been among those slashing risky assets in this area. New rules that make trading bonds for instance more capital-intensive mean those that struggled to match the revenues of their biggest rivals will be forced to rein in their ambitions for this division. investment banks, are having to shed jobs and underperforming divisions.įrom Switzerland’s UBS, wounded by a rogue trading scandal, to Germany’s Deutsche Bank, which topped advisory fee tables in Europe last year, all firms are combing through their businesses to try to ensure their models are viable. Saddled with high costs and hit by more than six months of slumping trading income, even those topping global industry rankings, like the major U.S. “For the 20 firms that used to want to be top five in investment banking, you’ve now got about 10 to 12,” said Peter Hahn of Cass Business School. And new regulations and turmoil in the euro zone may accelerate this pullback in the rest of the industry in coming months. ![]() ![]() Some, like Britain’s majority government-owned Royal Bank of Scotland, have already abandoned global ambitions for their investment banks. ![]()
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