The launch of the European Central Bank’s Outright Monetary Transactions generated a bounce in risk appetite and deal volumes, but experience suggests this could be short-lived until Europe’s path to economic recovery is clearer. The headlines for investment banks are still rather grim. Even in Asia, the giant market of the future, investment bankers are losing their jobs.
The industry is witnessing genuine capacity reduction, not just staff cuts, with banks such as Crédit Agricole, Royal Bank of Scotland and UniCredit all shutting or selling entire divisions. New chief executives at UBS, Barclays and Nomura are paving the way for potential strategic reviews in which many international activities may come under the microscope.
