Traders thought likely to be at risk as banks mull scaling back

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Where will the new leaders of Europe’s top securities firms scale back to increase returns ? If the second quarter is any guide, their bond-trading operations could bear the brunt.

Bloomberg News reports that Credit Suisse, Barclays and Deutsche Bank are already overhauling their investment banks to respond to stricter capital rules and a slump in debt trading that eroded some of their most profitable businesses. Now the banks’ new bosses, who took over this month, must decide where and how much more to scale back.

'They have to adapt, cut costs and refocus by exiting businesses if needed', said Christian Sole, who helps manage $96.9bn at Candriam Investors Group in Brussels. 'We can hope that outsiders coming in may have freer hands to reshuffle their banks than previous CEOs. Profits just aren’t satisfactory at the moment'.

To access the complete Bloomberg News article hit the link below:

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