Other, continuing pressures look more significant—in particular, low investment returns and pressure from clients to cut costs. Where active managers remain, they have to cut costs, too, to stay competitive. Remote employeesOne U.K. firm, Frontline Analysts, runs teams of equity and credit analysts based in India on behalf of investment banks in London. But to stay profitable, he says, investment banks will need to cut costs further to substitute for economies lost through increased regulation. “Investment banks have adjusted significantly, but the process is not complete.”Mr. Davies is a London-based writer for The Wall Street Journal’s Heard on the Street column.

Source: Wall Street Journal April 25, 2017 02:03 UTC