Being a big global bank not worth the hassle: poll

London

BEING one of the world's top 30 banks is not worth the hassle of extra regulatory scrutiny and capital requirements, according to a poll of financial industry investors last week. Morgan Stanley said 62 per cent of investors polled at its European financial industry conference said the negatives of having a global banking business outweighed the benefits as regulations had "become overbearing".

Only 28 per cent of investors said the benefits of being a large and truly global firm outweighed the negatives, and 10 per cent of the 60 people polled were undecided. "We found it striking that some management teams are seeking to make their businesses simpler, and we believe investors would reward the restructuring potential if strategy is clear and perceived as achievable," Morgan Stanley analyst Huw van Steenis wrote in a note to clients on Wednesday.