Friday, 23 March 2012

Price war heralds investment banking shake-out | Reuters

Investment banks fighting for survival in a world of stricter regulation and more expensive funding are embroiled in a price war as they battle to hang on to clients.

Some are offering ultra-low prices across a range of their most prominent activities such as equity and debt sales, advice on mergers and acquisition (M&A), and more arcane - but widely used - derivative instruments.

Rivals are left with the choice of following suit and losing money, or sticking to their guns and hoping that the cut-price banks will eventually be forced out of the market.

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