Wall Street Fading as Emerging-Market Banks Gain Share

Global investment banks based in Europe and the U.S., facing regulatory and cost-cutting pressures at home, are losing market share in emerging economies to smaller domestic competitors.

Credit Suisse Group AG, Morgan Stanley and Citigroup Inc. are among Western securities firms seeing the biggest erosion in some developing markets, according to data compiled by Freeman & Co., a New York-based consulting company. Their share of investment-banking fees is being diluted by local banks including Brazil’s Grupo BTG Pactual SA, Russia’s VTB Capital and China’s Citic Securities Co., the data show.