Deutsche Bank and UBS 'may speed up spending cuts'

24 October 2011

Some of the largest investment banks in Europe may speed up their spending cuts as the region's sovereign debt problem worsens, it has been suggested.

Kian Abouhossein, analyst at JPMorgan and Chase, noted poor earnings prospects and greater demands for capital may force lenders such as UBS AG, Deutsche Bank, Barclays and Credit Suisse Group - founded in 1856 - to make redundancies and implement asset reductions earlier than previously planned, Bloomberg reports.

The industry expert observed these financial institutions could scale down numerous business operations in a bid to compile greater reserves and cut costs.

These bodies are hoping to reduce risk-weighted assets sooner rather than later, Mr Abouhossein explained, adding: "They've already all started, but they'll probably find it harder than expected because the environment is clearly getting tougher."

Each of the banks listed are set to report their third-quarter results over the coming days and have confirmed they hope to lessen these assets by around $415 billion in preparation for more stringent capital requirements.

By Gary Cooper

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