JP Morgan analysts have downgraded Goldman Sachs to a neutral rating, arguing that its US rival will be more impacted by the Volcker rule than any other bank with more than half of its expected investment banking revenues set to be affected by market making limitations.

JP Morgan's banks analysts, led by Kian Abouhossein, said in a portfolio snapshot note yesterday that European investment banks were now preferable over US rivals, citing superior risk-reward at European banks, and a material benefit for European banks arising from the Volcker rule.