Changes to US regulatory and accounting regimes will depress investment banksâ returns and could lead to the last independent broker-dealers being acquired by commercial banks, according to the head of global banking for the Americas at Deutsche Bank.
The use of US Federal Reserve and taxpayersâ money as a safety net for investment banks in the wake of Bear Stearnsâ collapse has sparked expectations that regulators will subject them to strictures more in line with those faced by commercial banks.