Investment Banking

The fix for low banking returns doesn’t lie in mergers

Bankers love to think about mergers, but they aren’t a simple solution to the problems of Europe’s lenders, even within the same country.

UniCredit shares plunged Tuesday after Chief Executive Jean Pierre Mustier said he was stepping down over a disagreement about the strategic direction of Italy’s second-largest bank. A widely respected figure, Mustier had pushed back against board pressure to do deals, favouring capital returns to shareholders.

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