“We need to step up our attention to our trading businesses,” Cryan, 55, said at an investor conference organized by the bank in New York on Tuesday. “We will probably have to do more and that’s just in the current environment reflecting available client volumes.”
Bloomberg News reports that Europe’s largest banks have been shrinking their securities units, hurt by volatile markets and tougher capital requirements. While Cryan extended cuts to the fixed-income trading empire built by his predecessor Anshu Jain, he stopped short of following rivals such as Credit Suisse in imposing deeper cuts across the trading arm, instead scrapping dividends and selling assets to bolster capital levels.
“We need to keep the scalability in case I am wrong and volumes come back a lot, but at the moment we are expecting that depending on the asset class that you are trading and whether it is in derivative or securities form, the markets have probably fallen off by anything between 20 and up to 50%,” Cryan said. “Some products since 10 years ago have obviously fallen off by 100% and that was by design."
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