Propping up the profits

With commissions waning and market activity light, banks are increasingly turning to propriety desks to boost their profits. But is this extra risk-taking a cause for concern, asks Joanne Hart

Key points • Banks are using prop desks to boost profits
• While prop desks still trade more equities than credit, the balance is gradually shifting
• The move concerns some clients who remember the losses incurred by banks’ prop desks in the wake of the 1998 Russian default

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