Evening links: BarCap says some European banks could close parts of their IBD businesses. Here’s who’s at risk

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We’re a little late with this, but the Telegraph has an interesting story on a depressing report produced by Barclays Capital  Barclays.

‘Senior bankers’ have apparently told BarCap’s analysts they expect ‘several European banks to completely shut down parts of their investment banking divisions.’

ECM appears most at risk. BarCap estimates that revenues from equity underwriting fell 44% year-on–year in January, M&A revenues were down 39%.

Which banks are most likely to close down parts of their IBD divisions? BarCap doesn’t say, but a brief investigation suggests some possible candidates. SocGen and BNP Paribas each accounted for 2% or less of all fees from ECM deals in Europe last year (despite being strong in France) according to Thomson Financial. With a 0.6% share of European fees, Macquarie doesn’t look too hot (although isn’t a European bank). Ironically, Barclays itself only accounted for 2.9% of European ECM fees in 2011, and therefore doesn’t look too hot either.


Tim Linacre, chief executive of Panmure Gordon, said that “great overcapacity” had developed in the sector in the years leading up to the financial crisis. “The economics of our industry were distorted – there were excessive, abnormal profits being made.” (Financial Times) 

Nearly 100 staff will be made redundant on Thursday when Canaccord Financial completes its acquisition of Collins Stewart Hawkpoint. (Financial Times) 

Only 320 British bankers moved to Switzerland in 2011. (Channel Four News)

Londonis still the world’s main financial services centre. (Financial Times) 

On the call analysts asked management if Jefferies would continue to expand aggressively. Richard Handler replied: “We will continue to play aggressively on both offense and defence. We have a unique platform and the competitive landscape has never been better

for us but we are also mindful of the need to protect the firm.” (Financial News)

At the time of her decision to stand down, it was thought Margaret Cole had no specific job to go to. She was continuing to work at the FSA for a limited time before going on six months’ gardening leave. (Telegraph)

What Harvard graduates who’ve worked at Goldman say about it. (Poetsandquants)