Banks May Lose $17 Billion of Revenue, Report Says
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Investment banks may lose $17 billion of revenue in fixed income, currencies and commodities by 2016 because of levies and regulation, according to a Deutsche Bank AG report.
European securities firms will bear most of the erosion as a tax on financial transactions cuts sales and trading volumes, Deutsche Bank analysts including Matt Spick, wrote in a note to clients today. The next “wave” of regulation on over-the-counter derivatives and clearing may spur smaller competitors to exit the businesses, they said.