Global investment banks are set for a 21 percent decline in revenue this year, with European lenders including Credit Suisse Group AG most at risk, according to analysts at JPMorgan Chase.
'There is no liquidity crisis in European investment banks in our view', Abouhossein said. 'But we see earnings at risk in a challenging credit trading environment, low level of deal flow and lower equity markets'.
The analysts upgraded Morgan Stanley and Goldman Sachs Group Inc. while cutting Credit Suisse Group. Their preferred investment bank is Deutsche Bank.
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