'It’s positive for the banks that remain active as new business will be split among fewer players', Daniel Hupfer, who helps manage $46bn including Deutsche Bank shares at M.M. Warburg, said in a phone interview Tuesday. 'Investment banking and lending margins will rise if fewer banks offer those services'.
The world’s biggest investment banks, which also include JPMorgan Chase & Co. (JPM) and Citigroup Inc. (C), are facing less competition for business after UBS became the latest of Europe’s banks to shrink its operations, saying it will reduce fixed-income trading. Royal Bank of Scotland Group Plc., which said in January it would close or sell unprofitable equity and mergers advisory divisions, was also among victims as Europe’s debt crisis roiled markets and tighter capital rules made some businesses unprofitable.
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UBS Fixed-Income Capitalulation Boon for Deutsche Bank
Storm Keeping Millions From Work May Slow Economic Growth
Mutual Funds Squeezed as Exchange Shutdowns Reduce Trade Window
The Alchemists: Three Central Bankers and a World on Fire
Hubris: How HBOS Wrecked the Best Bank in Britain
