Tuesday, September 6, 2016

Are We Facing Another Financial Crisis?

Financial Times: Falling revenues put pressure on investment banks

Top 12 institutions face calls for radical action to boost income.

The world’s biggest investment banks saw combined revenues sink by 15 per cent in the first half of this year, the most since the aftermath of the financial crisis, underlining the urgency of taking radical measures to boost returns to shareholders.

The second quarter saw more activity than the first, where there were simultaneous falls across stocks, bonds and commodities and a dearth of companies doing deals. But the rebound was not strong enough to avert a slump in total revenues from investment banking for the top 12 banks, according to figures from Coalition, a London-based group that combines public information with independent research and validation by a network of market participants.

Read more ....

WNU Editor: Donald Trump is right on this one .... Trump says U.S. interest rates must change as Fed weighs rate hike (Reuters). Unfortunately .... when interest rates do rise .... and they will rise Trump or no Trump .... the impact is going to be serious across the board, starting with the interest that governments must pay on their debts.


rjbrash said...

There will be pain. Kicking the can down the street only increases the pain intensity and duration.

Matthew Dupuis said...

Raise rates and say goodbye to the housing/real estate market... It will be the final nail in the coffin.

James said...

They've got themselves in a trap, don't raise rates and the debt service will wipe out everything, raise the rates and as Matthew says bye bye housing/realestate markets (not to mention the DOW). So they'll keep it down until the election and hand it off to the new Administration.