Big banks set to cut more costs

Tim Wallace
Follow Tim
THE SQUEEZE on investment banks from red tape is not over and banks must keep cutting costs over the coming years, Standard and Poor’s predicted yesterday.

Capital markets revenues are down 10 per cent this year, and S&P does not predict a recovery in 2015.

“We see a divergence among banks’ longer-term strategies to strengthen returns, with some fundamentally shrinking their investment banking activities,” the credit ratings agency predicted.