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OBAMA’S PLAN | HOW IT COULD HIT THE CITY’S BIGGEST PLAYERS

RBS
Has a hedge fund and prop trading desk. As it is majority owned by the government, taxpayers will be the biggest losers if it is forced to close down profitable businesses.

HSBC
Expected to be one of the least affected banks. While it has a large US presence, its investment banking business is geographically diverse cushioning it from the changes.

BARCLAYS
Barcays Capital may find it easier to go it alone. Having last year bought Lehman Brothers’ North American trading and investment banking assets it will be hit.

JPMorgan
While its key focus is its retail operations, it still has large derivative-trading, hedge-fund and private equity businesses. Separating them would be difficult & costly.

Morgan Staney
It may quit its bank holding status to focus on investment banking. As well as hedge fund FrontPoint, it has stakes in two more, and a large real estate fund.

Goldman Sachs
Could give up its bank holding company status. Hedge funds are a key chunk of its earnings, as is private equity. Prop trading worth 12 per cent of revenues since 2003.

CREDIT SUISSE
Trading separate from market-making for its clients represents only 1-2 per cent of revenues. Could avoid the crackdown by switching operations to Europe or UK.

Deutsche bank
One of the least affected, has a small prop trading unit. Like its European peers it could continue to trade by simply re-locating such operations outside the US.

CitiHas a large retail operation that is currently married to its derivative-trading, hedge-fund and private equity businesses. Separating the units could be damaging.
Bank of America
Bank of America is a huge firm: if it were to keep on growing could be hit by the new limits on size. Will be forced to make a tough choice on the future of its business.