It's a well-explored theme that Europe's investment banking pie is shrinking.
What's less widely appreciated is just how fierce the fight is going to get for a piece of that diminishing prize. The result will be messy for everyone - including Wall Street.
Bloomberg News reports that under new chief executives, Deutsche Bank, Credit Suisse and Barclays are finally getting round to a much-needed shake-up. The aim for all three is to scale back in investment banking, where results are weighed down by post-financial crisis capital rules and volatile financial markets.
But even as this massive upheaval takes place, the pool of investment banking revenue is already shrinking much faster than anyone expected, as results reported by Europe's biggest banks this earnings season show. Investment banking revenue at Deutsche Bank fell 30% in the fourth quarter of 2015 from a year earlier, while that of Credit Suisse was down 26%. At UBS, the decline was 10%.
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