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Wall Street Profits Face Bigger Squeeze by Regulation, BCG Says

Wall Street firms from Bank of America Corp. to Switzerland’s UBS AG have already seen their profitability reduced by new capital requirements designed to avert future bailouts. Photographer: Scott Eells/Bloomberg
Wall Street firms from Bank of America Corp. to Switzerland’s UBS AG have already seen their profitability reduced by new capital requirements designed to avert future bailouts. Photographer: Scott Eells/Bloomberg

April 30 (Bloomberg) -- Profitability at Wall Street banks has further to fall as more rules designed to prevent another financial meltdown are imposed: Global Capital Markets 2013 study released today by Boston Consulting. * Avg ROE for 30 biggest cos. in capital markets, investment- banking industry will drop 3 pct points after sliding to a

range of 10%-13% last year

* BCG didn’t say when decline would be completed * BCG didn’t say when decline would be completed</li></ul> * Philippe Morel, global leader of BCG’s capital markets

practice, at news conference: “We’ve seen two-thirds of the

regulations’ impact, another third is coming” * Avg ROE achieved by U.S.-based banks last year was 13% * European banks trailed with ~10%: Morel

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To contact the reporter on this story: Jeremy R. Cooke in Boston at +1-617-210-4654 or jcooke8@bloomberg.net

To contact the editor responsible for this story: Joanna Ossinger at +1-212-617-7789 or jossinger@bloomberg.net

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