News

Law

Asset Management

Investment Banking

Wealth

Hedge Funds

People

Newsletters

Events

Lists

Banks may face complications with amputations

Shutting down certain business lines makes sense in theory but can get awfully messy in practice

Inevitably the horrific third-quarter results announced by most of the large investment banks have been accompanied by calls for banks to start slashing and burning.

Analysts, investors and even the executives at the banks themselves realise that certain business lines have to be scaled back or shut down in order for banks to achieve the right business mix to cope with the altered economic and regulatory environment in which they find themselves. The trouble is, that's easier said than done.

WSJ Logo