Transformational cost savings are a “pipe dream” for investment banks and only a handful will “eventually” be able to meet their cost of capital, the Boston Consulting Group has warned.
The caution came as BCG executives were speaking to a teleconference of 140 investors about the future of investment banks after publishing a report highlighting the challenges the sector faces as regulatory costs mount, trading volumes drop and interest rates remain problematically low.
The full article from the Financial Times is available at http://www.ft.com/intl/cms/s/0/244d076e-27d2-11e6-8b18-91555f2f4fde.html?ftcamp=engage%2Femail%2Fnewsletters%2Fsmart_brief%2Fsmartbriefnewsletterscontrafcf%2Fauddev&segid=0800933#axzz4AQg2Zrte
