Investment Banking

Banks eye prime brokerage gains after tariffs drive $15bn haul

US president Donald Trump’s ‘Liberation Day’ triggered market swings that helped to increase the sector’s revenue by 20% in the first half of the year

Driven by political tailwinds, it’s been a good year for prime broking, according to top bankers
Driven by political tailwinds, it’s been a good year for prime broking, according to top bankers Photo: Chip Somodevilla/Getty Images

When family office Archegos Capital Management collapsed in 2021, some of the world’s biggest investment banks were left nursing losses that totalled $10bn.

Much of this stemmed from their prime brokerage units, which offer financing and trade execution to hedge funds among other services.

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110-Hour Workweeks Drove Young Bankers at a Boutique Firm to the BrinkExternal link

110-Hour Workweeks Drove Young Bankers at a Boutique Firm to the Brink