European banks, including Deutsche Bank AG and Standard Chartered Plc, have less equity relative to assets than their U.S. peers, and will have to shrink or boost capital as regulators demand reduced leverage.
The biggest U.S. prime money-market funds cut their investments in Deutsche Bank AG by $8.1 billion in October, the largest drop among 35 of the largest banks in Europe, the U.S., Japan and Canada, Bloomberg analysis shows.
The biggest U.S. banks captured the highest share of global trading revenue in at least two years as their counterparts across the Atlantic reduced risk in the fourth quarter amid a worsening sovereign-debt crisis.
In 2006, Georges Pauget, then Credit Agricole SA Chief Executive Officer, bought Greece’s Emporiki Bank, calling it a “perfect fit.” Six years on, the purchase has put the French lender in the eye of a perfect storm.
Credit Suisse Group AG, the second- largest Swiss lender, is eliminating about 100 jobs at its U.K. investment-banking unit as it presses ahead with cost-cutting plans, said three people with knowledge of the reductions.