Banks told to sharpen up allocation of resources

There continue to be numerous areas of significant under and over-provision of services in investment banks, according to Morgan Stanley and Oliver Wyman

There is a catchy new title for 2014: the year of the re-allocation of investment banking resources.

From the mismatch between the allocation of capital and the demand for liquidity in the fixed income markets, to the broken economics of many cross-subsidy models, the warning signs are there: it is time for investment banks to re-think where they commit financial and intellectual capital.

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