Wall Street banks are firing traders despite strong performance

Finance


Nearly a decade after the financial crisis, the industry is still in contraction mode as a handful of U.S.-based winners — think J.P. Morgan Chase, Goldman Sachs and Morgan Stanley — take market share from beleaguered European rivals. German lender Deutsche Bank said Thursday it will eliminate 7,000 jobs, including a quarter of its equities trading personnel. Also hurting headcount is the continued migration of stock and bond trading to electronic platforms and away from human-to-human interaction.

European firms bore the brunt of the recent job cuts, according to Amrit Shahani, research director at Coalition. That’s because American banks benefited disproportionately from the first quarter’s 28 percent bump in overall stock trading revenue, he said.

“Most of the uptick is going to the American banks, with one or two exceptions,” Shahani said. “The gap between the Americans and Europeans has widened.”

The five biggest U.S. banks claimed 62 percent of global revenues, while seven European firms shared the rest, according to Coalition’s data. That gap was the widest since at least 2012, showing that European firms have been steadily losing ground.



Source link

Products You May Like

Articles You May Like

Global turmoil shows the US is still the safest place for your money
‘Time for the founder to move on’
5 things investors should do now before the next downturn
Uber Q2 2018 revenue, bookings slow slightly
Morgan Stanley raises Salesforce price forecast, seeing success from its MuleSoft deal

Leave a Reply

Your email address will not be published. Required fields are marked *