Just when you thought the investment banking market was showing some signs of rationalisation and consolidation, you find some idiot new entrant,” said one senior UK investment banker recently.

Almost the only thing that everyone can agree about the European investment banking industry is that it has too much capacity. So why try to enter this overcrowded market? Well, for a US bank buying a European investment banking operation, be it mid-cap or boutique, may not be as stupid as it seems - in theory anyway. The FTSE 100 is currently trading at five-year highs, cash on corporate balance sheets are at record levels, and even Greek corporates are managing to place bonds. There are, therefore, several financial institutions that might be contemplating an expansion into the sector.