Jan. 26 (Bloomberg) -- Deutsche Bank AG’s Anshu Jain, who is taking over as co-chief executive officer at the end of May, said investment banks face “powerful consolidation” that may help offset the effect of stricter capital rules on profits.
“Thanks to a series of restrictive legislation that is coming, there’s going to be restrictions on business models,” the head of the firm’s investment bank said in an interview with Bloomberg Television today at the World Economic Forum in Davos, Switzerland. “Having said that, there’s going to be and is powerful consolidation in our industry, which means that those that survive this will actually wind up with a margin expansion over time.”
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