Japanese banks ponder the future
Investment banking has not helped JapanÆs banks to juice their profits. On the contrary, the struggle for a profitable model is still on.
Whither JapanÆs banks The latest spate of third-quarter earnings show that the move into investment banking by Japanese lenders has failed to spice up their sluggish earnings. On the contrary, they are all suffering due to the US subprime crisis, from Nomura to Mizuho. In other words, whether a Japanese version of Merrill Lynch û as Nomura is sometimes referred to û or a massive commercial bank, the local lenders didnÆt make much return on their capital in 2007.
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