Courtesy of Benzinga.
Investment bankers, already reeling from declining commission revenues and new regulatory requirements, not to mention new competition from “robo-advisors,” have now been hit with another gut punch: The Brexit.
Brexit is predicted to take a hefty discount off of future merger and acquisition revenue for the big banks, who depend on Europe for about 30 percent of their global M & A advising activity. As it is, United Kingdom M & A is down 85 percent year over year for the second quarter, according to Business Insider.
On the bright side, in the long run Brexit might provide the industry with one of the only silver linings it may see for awhile. The devalued pound, combined with low interest rates and global growth concerns could eventually encourage more M&A activity.
Posted-In: BrexitNews Eurozone Psychology M&A Markets General
