Is Investment Banking Dead?
My latest at Forbes considers the future of investment banking in the light of cutbacks in just about all global investment banks due to regulatory pressures and changing investor preferences. Barclays is late to the party:
In the wake of a disastrous performance in fixed income & commodities (FICC) trading, Barclays has announced severe cuts to its investment bank. 7,000 jobs are to go over the next two years, and much of the troubled FICC division is to be thrown into a new internal “bad bank” for eventual sale or winding up. Investment banking is to be reduced to no more than 30% of the Group’s asset base, and rather than trading, its focus is to be on client advisory services, wealth and asset management. The Diamond days, when investment banking was Barclays’ largest and most profitable activity and its ambition was to be among the premier global investment banks, seem to be well and truly over....Read on here.