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.

All material subject to strictly enforced copyright laws. © 2020 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.



Take out a complimentary trial

Take out a 7 day trial to gain unlimited access to Euromoney.com and Asiamoney.com analysis and receive expertly-curated updates direct to your inbox.

 

Already a user?

Login now

 

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