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Europe will rue the eclipse of its investment banks by US giants

Comment: Dominance by Wall Street will damage the continent’s financial architecture

Europe will rue the eclipse of its investment banks by US giants
Photo: iStockphoto / FN montage

Does Europe need European investment banks? Or would it be fine for Europe to depend on the Wall Street giants?

Every week seems to bring further news of retrenchment by European banks. Most recently Crédit Agricole said it would cut back assets in its investment bank in response to tightening capital rules. Meanwhile, the Americans continue to increase their market share in Europe.

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