Investment banks' results reflect gain from "flow" business

11/12/2009 | Financial Times (tiered subscription model)

Third-quarter results of the world's largest investment banks show they are making gains from trading of fixed-income and foreign-exchange products on behalf of clients, the so-called flow business, instead of proprietary trading. Deutsche Bank, Credit Suisse, Barclays, Goldman Sachs, JPMorgan Chase and others are all profiting from flow. "Everybody wants to be a flow monster now," said Huw Van Steenis, a Morgan Stanley senior banking analyst. "In an environment of stricter regulation, higher capital charges and uncertain markets, scale and efficiency in client flow is the right strategic response."

View Full Article in:

Financial Times (tiered subscription model)

Published in Brief: