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Rothschild’s safe bet trumps Deutsche Bank’s equities gamble

Rothschild is expanding into research and equity trading just as Deutsche is cutting back. Can both be right?

Rothschild’s safe bet trumps Deutsche Bank’s equities gamble
Photo: Getty Images

If you wait long enough, pretty much everything that happens in the City comes around again.

Look at Rothschild. In 1983 the investment bank bought a large minority stake in Smith New Court, providing the independent broker with the capital it needed to handle the upheaval caused by the Big Bang, the 1986 deregulation of the London stock market. Rothschild got a seat at the table in the new game of share trading (which it eventually sold at a fat profit).

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