Banks wasting resources as IPOs fail to revive earnings

By Owen Sanderson
27 Mar 2014

Banks are still allocating resources to unprofitable areas of business which are unlikely to get better, according to research from Morgan Stanley and Oliver Wyman.

“There is too much capital and cost tied up in areas where client payback will be low and banks are still working on old assumptions about cross-sell and cross-subsidies that may no longer hold,” according to the note, while Dealogic reported global IB revenue for the first quarter ...

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