News

Law

Asset Management

Investment Banking

Wealth

Hedge Funds

People

Newsletters

Events

Lists

US rule changes to spur banking consolidation

Changes to US regulatory and accounting regimes will depress investment banks’ 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 taxpayers’ money as a safety net for investment banks in the wake of Bear Stearns’ collapse has sparked expectations that regulators will subject them to strictures more in line with those faced by commercial banks.

WSJ Logo