Bloomberg News

Deutsche Bank’s Jain Says Investment Banks Face Consolidation

January 26, 2012

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.”

To contact the reporter on this story: Erik Schatzker in New York at eschatzker@bloomberg.net

To contact the editor responsible for this story: Nicholas Comfort at ncomfort1@bloomberg.net


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