European Bank announced: more credit institutions are at risk

Credit Suisse Group AG, Barclays Plc and Deutsche Bank AG have already made the necessary reforms to respond to more stringent capital adequacy rules and the decline in demand for loans, which undermines the most profitable part of their business. The new bosses of banks are at serious issues identified where and how to reduce their presence.

"They have to be adapted to reduce costs and to shift from going out of business if needed," said Christian Sole involved in the management of € 89.2 billion ($ 96.9 billion) in Candriam Investors Group in Brussels . "

Profits are unsatisfactory at the moment for some of the leading banks.
Credit Suisse published its results on Thursday, while reports revenue at Barclays and Deutsche Bank will be published next week.

The five largest US companies trading with the US Securities reported a drop in their total income from trading bonds by 12% to $ 10.9 billion in the second quarter from a year earlier. This is the seventh decline in the last four-eight

Credit Suisse will report 13% drop, according to forecasts of analysts. Barclays will have a decrease of 6%, while Deutsche Bank may have a growth of 1.5 percent, helped by gains in the dollar against the euro.

Cost of Deutsche Bank amounted to 85% of revenues in the first quarter, compared with 69% at Barclays and 74% in Credit Suisse.
Barclays, has already announced plans for layoffs of 19,000 jobs across the company. Deutsche Bank said in April that it would reduce costs to about 65% of the company's revenue within five years. with plans to exit from 10 countries, cutting jobs and selling assets. Barclays inflated costs with fines and legal provisions, including sanctions worth $ 2.5 billion in April for his role in the manipulation of interest rates. Credit Suisse cut costs by 1.3 billion. CHF ($ 1,360,000,000) by the middle of 2011, and plans to cut at least 1.34mlrd francs this year.

When global regulators require banks to hold higher levels of capital to absorb potential losses, fixed income departments were among the most affected.
"Presently, e early to expect a capital increase," said Guy de Blonay, who manages about 600 million liras ($ 934 million) in Jupiter Asset Management Ltd. in London. "You can not just increasing capital and no proper strategy behind this whole process, to explain why this would be helpful."