A year of living dangerously

Investment banks and their clients took big risks to generate profits in 2004

Friday 31 December 2004 at 16:00

Volatility is the lifeblood of trading desks. Without it, the heart of the securities industry beats more slowly. Markets were overcome by torpor in 2004 and making profits through trading demanded a healthy appetite for risk.

Bankers expect volatility to return in 2005 and risk levels have flattened out. But the golden days of trading are unlikely to return.