The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

Last days of pure investment banks

That Goldman Sachs feels it must write to the Federal Accounting Standards Board (FASB) to ask that it consider making banks mark loans to market is telling. It's the clearest signal yet that the pure investment banks are, finally, concerned at the potential which lurks within the large commercial and universal banks.

The latter have been a threat for several years now, but only in recent months has it become truly worrisome. That is, in part, due to consolidation. Citigroup, JP Morgan Chase, Bank of America, Deutsche Bank, even CSFB with the addition of DLJ's top-notch leveraged finance team, now all offer a wide range of credit products, with a balance sheet to back it up.

Another reason is that only in the past year has the extension of credit in whatever format - loans, bonds, commercial paper - returned to the centre stage of the investment-banking business as a result of the stock markets crash and consequent drop in M&A and equities transactions. And pure debt houses are proving that the traditional view of credit as a less profitable business than equities and M&A is no longer valid; Barclays Capital, for example, brings in over 20% return on capital.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree