Major banks face growing pressure to extract more money
from, or even sever ties with, unprofitable hedge-fund clients as they cut
costs in the face of tough trading conditions and try to refocus on the biggest
managers, Reuters reports.
Industry insiders say prime brokers — which provide services
such as stock lending and financing for hedge funds — are sifting through their
client lists, in some cases demanding higher fees on trading or a greater share
of a fund's business, and sometimes telling funds to look elsewhere.
The moves come as banks, faced with a tough economic
environment, higher regulatory costs, and looming Basel III capital standards
that are set to reduce returns on equity, look to cut costs across the board
and focus on more profitable activities…..
Find out more at http://www.cnbc.com/id/48394650
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