Investment Banking

Banks eye prime brokerage gains after tariffs drive $15bn haul

US president Donald Trump’s ‘Liberation Day’ triggered market swings that helped to increase the sector’s revenue by 20% in the first half of the year

Driven by political tailwinds, it’s been a good year for prime broking, according to top bankers
Driven by political tailwinds, it’s been a good year for prime broking, according to top bankers Photo: Chip Somodevilla/Getty Images

When family office Archegos Capital Management collapsed in 2021, some of the world’s biggest investment banks were left nursing losses that totalled $10bn.

Much of this stemmed from their prime brokerage units, which offer financing and trade execution to hedge funds among other services.

WSJ Logo
Threats to Fed Independence Are ‘Very Worrying,’ ECB’s Lagarde SaysExternal link

Threats to Fed Independence Are ‘Very Worrying,’ ECB’s Lagarde Says