Net income for the five largest U.S. dealers, including JPMorgan and Citigroup, has been much higher and less volatile since the financial crisis than before, with a Sharpe ratio of net income for these top dealers coming in nearly twice as high now since the crisis, according to a NYFED report. Tobias Adrian and team highlight in their post published at the Federal Reserve Bank of New York that estimated returns to market making are at historically low levels, a finding inconsistent with market analysts’ argument that higher capital requirements have trimmed market volatility. Higher capital requirements vs. Increased cost of market making Adrian…
Net Income Of Large U.S. Banks Soared Since Financial Crisis: NYFED
Mani
Mani is a Senior Financial Consultant. He has worked in Senior Management role in large banking, financial and information technology organizations. He has provided solutions for major banking and securities firms across the globe in the area of retail, corporate and investment banking. He holds MBA (Finance) and Professional Management Accounting Qualifications. His hobbies are tracking global financial developments and watching sports