Investment Banks Should Reallocate $1 Trillion Of Assets: MS

Morgan Stanley Research and Oliver Wyman published a blue paper today (March 20) titled "Wholesale & Investment Banking Outlook Mis-allocated Resources: Why Banks Need to Optimise Now." The paper highlights the need for banks to make significant reallocations in their balance sheets to maintain RoE over the next few quarters given looming government regulation and a changing macroeconomic environment.

Overview -- the need for reallocation in banks

The report includes a survey of major investment bank executives and clients. MS and OW analysts Huw van Steenis, Ted Moynihan and colleagues offer an overview of the report below. "Our proprietary client survey for this report underscores the need...