Tuesday, February 12, 2013

Who’s on First: Wall Street Fading as Emerging-Market Banks Gain Share

Global investment banks based in Europe and the U.S., facing regulatory and cost-cutting pressures at home, are losing market share in emerging economies to smaller domestic competitors, Bloomberg reports.

Credit Suisse , Morgan Stanley and Citi. are among Western securities firms seeing the biggest erosion in some developing markets, according to data compiled by Freeman & Co., a New York-based consulting company. Their share of investment-banking fees is being diluted by local banks including Brazil’s Grupo BTG Pactual SA, Russia’s VTB Capital and China’s Citic Securities Co., the data show.

The share of fees for U.S. and Western European firms in Latin America, the Middle East, China, India, Russia and Eastern Europe plunged to 43 percent last year from 69 percent in 2005, according to Freeman. The shift coincides with a decline in lending by European banks in emerging markets, making it harder to compete for assignments, the data show...

More?  Check out http://www.bloomberg.com/news/2013-02-12/wall-street-fading-as-emerging-market-banks-gain-share.html

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