News

Law

Asset Management

Investment Banking

Wealth

Hedge Funds

People

Newsletters

Events

Lists

Comment: Banks will suffer the slow drip of water torture

Investment banks are receiving their comeuppance. This will not happen overnight nor will it be a sudden reversal of their fortunes. The process will be more like water torture...drip, drip, drip.

This fate is the least they deserve, according to their growing army of critics. It will take the form of a sharp fall in return on equity, as falling fees and reduced leverage eat away at profits.

WSJ Logo