Barclays should quit equity research. So should Citigroup. And Deutsche Bank. That at least is the private view of some people working for those banks who say it is time to face reality and cut their losses. Admittedly this view does not seem to be shared by the people who actually run the banks. Or, unsurprisingly, by the people who run their research departments. But there is a growing feeling elsewhere that the banks should bite the bullet. ...
The unbundling of fees prompted by MiFID II requirements has prompted questions over whether investment banks should ditch equity research. In a report published in July, the Bank for International Settlements (BIS) said that “some firms are still using their own research to provide advice on how best to invest clients’ money”. It's also been suggested that the more exclusive the research, the less necessary second-tier advice becomes.