News

Law

Asset Management

Investment Banking

Wealth

Hedge Funds

People

Newsletters

Events

Lists

Fixed income faces Basel Committee body blow

Deutsche Bank analysis estimates proposed regulatory charges concerning credit derivatives could leave FICC-heavy banks facing extra $6 billion capital requirement

One of the main drivers of investment banking profits could face extra pressure as a result of proposed changes in regulation, which may result in $200 billion of assets being added to the balance sheets of investment banks that have large fixed income businesses.

Analysis by Deutsche Bank estimates for the first time that the biggest players in fixed income could each have to put a further $4.5 billion to $6 billion in capital against its fixed income, currencies and commodities business.

WSJ Logo