Major investment banks with modest gains
Major investment banks in the US will probably reported another quarter of modest gains after months of waiting for the historic raising of interest rates by the Federal Reserve failed to boost their key business activities. The results will be published within the next week and a half, will likely show that financial institutions on Wall Street have generated even lower trading income in the last three months of 2015 than in the third quarter of problematic Last year, writes Financial Times.
Successive poor results underscore the severity of the structural changes introduced by the so-called. rule “Volcker” ban on banks trading with their own capital and as the migration to electronic platforms on investment banks. Estimates of Credit Suisse in the fourth quarter five large financial institutions – JPMorgan Chase, Goldman Sachs, Morgan Stanley, Bank of America and Citigroup – have generated a total of 8 bln. Dollars in revenue from core businesses by selling debt and trade. This represents only 2% growth in comparison with a particularly heavy analogous period of 2014 and 15% decline compared to the previous quarter of 2015
End of the year is generally a quiet business period, as investors reduced their activity on the eve of the festive season. According to analyst at UBS Brennan Houkan But last 2015 fourth trimesecheie it was less than usual. According to him, among the factors that have been consistently low oil prices in international markets combined with growing concerns about China’s economy. Smoot atmosphere was preserved in the new year notes Houkan as is exacerbated by political tensions in Saudi Arabia and North Korea.
Observed last year boom of mergers and acquisitions (M & A) helps to relieve some of the pressure on financial institutions. Fees on corporate M & A transactions, however, amount to only a tenth of those generated by sales and marketing in the balance sheets of nine leading investment banks in the first nine months of 2015