Banks are weighing some of the deepest revamps since the financial crisis.
Seven years after the collapse of Lehman Brothers, Europe’s largest banks are poised for more bloodletting.
Bloomberg News reports that new management teams at Deutsche Bank, Barclays and Standard Chartered are among executives contemplating reorganizations that could involve thousands of job reductions. Deutsche Bank, which runs Europe’s biggest investment bank, may trim 8,000 positions across its businesses, a person familiar with the matter said this week.
Banks are weighing some of the deepest revamps since the financial crisis as stricter capital rules erode trading income and record-low interest rates squeeze margins in consumer banking. That contrasts with the U.S., where banks were quicker to raise capital levels and reduce costs after the 2008 credit crunch and are now profiting from a rebound in the economy.
'The top line at banks is under pressure in the low-yield environment and regulators are taking a relatively severe stance on capital', said Dirk Sebrechts, who helps manage more than $226bn at KBC Groep NV in Brussels. 'They have to look into their options on costs'.
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