Regulation will force long-term IB downsizing, says S&P

Tough rules on capital and leverage will push banks to reassess their business models not just in 2013 but over several years, as they adjust to a new regulatory paradigm and focus on key markets, Standard & Poor’s says. But even as banks strive to exit businesses that no longer fit their new strategies, legacy portfolios could hamper their progress, Nomura analysis has found.