UBS Fixed-Income Capitulation Boon for Deutsche Bank
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Global investment banks such as Barclays Plc and Deutsche Bank AG will probably increase their market share after UBS AG decided to scale back its trading arm in the face of higher capital requirements.
UBS announced an unexpected pretax loss of 2.87 billion Swiss francs ($2.7 billion) at its investment bank yesterday and job cuts totaling 10,000 across its business. Deutsche Bank reported an eight-fold surge in its pretax profit from investment banking, and adjusted pretax profit from the business at Barclays more than doubled, the London-based bank said today.