The global banking industry has taken several blows during the past few years. Some of them self-inflicted, such as index manipulation and money laundering, others from regulators keen to neutralize its tendency to destabilize the financial system.
As a result, top investment banks have been focusing on a traditionally less glamorous activity, writes the Financial Times. (paywall)
Asset management divisions at global banks now contribute a much higher proportion to group profits and revenues, and the expectation is that the importance of their investment units will continue to grow.
Fund management is a priority area for many of the world’s largest banks, including Morgan Stanley, JPMorgan, Deutsche Bank, Goldman Sachs, Credit Suisse and UBS.
But, the best laid plans…
Separately the FT reports:
Sovereign wealth funds in the Gulf have been pulling money out of asset managers at the fastest rate on record as they rush to boost their economies following the collapse in the oil price.
BlackRock, Franklin Resources, Invesco, Aberdeen Asset Management and the asset management arms of US banks State Street, JPMorgan and Goldman Sachs are all said to have suffered large outflows from sovereign funds.
Photo: Dean Russell