Private banking CEO roundtable: How has the European debt crisis affected your business?
PdW, Deutsche The fear of a European banking crisis and of a subsequent global recession has cast a shadow on the financial markets. There is a lot of fear among investors, which is leading them to be more conservative. Deutsche Bank is, however, perceived as being a strong bank, so we have seen a flight to quality, with some movement of clients from southern European banks seeking relationships with northern European banks.
TK, Barclays On the plus side, clients have needed us more for advice and creativity, but on the negative side, transaction flows have decreased because there is no question that clients are more cautious. The crisis has underpinned the need for regional balance and geographic diversity because at points the investment flows have been strong in one region and not in another. The global players have the advantage here, and as a result we see ourselves gaining market share.
JF, Citi Our strategy hasn’t changed and we are expanding in talent and technology, but the pace of investment has slowed in areas such as hedge funds. Clients are nervous because politics are driving economic outcomes, so they are looking more at wealth preservation.