High fives all round. After bumper investment banking profits in the first quarter, the Wall Street Journal is predicting that this one could be the best since the credit crisis began to unfold. The likes of JPMorgan, Goldman Sachs, Morgan Stanley and Bank of America Merrill Lynch are apparently getting back to basics, posting strong performance in trading and underwriting.

Equity and debt capital markets are tipped to do particularly well, as well as trading within fixed income. While this return to traditional revenue streams might seem like a breath of fresh air, sadly it may not last much longer.

One analyst says that the current run "is just not sustainable", while another suggests the mad rush to issue equities is about to peter out, meaning underwriting fees will slump once again.
Even fixed income trading margins are beginning to narrow. Sigh.

Bank of America Merrill Lynch cleaning up in mini M&A rally (Financial News)

Hedge funds are back (Times)

Lloyds TSB cutting 2,100 in group operations and wholesale units (Bloomberg)

"When the crisis is shaken off, it will not be a question of going back to 2006. The banks will operate under a very different regulatory regime. They must also re-learn lessons of how to manage themselves and in particular how to manage risk." (Telegraph)

Corporate bonds offering record returns (Bloomberg)

More regulation could stifle UK's recovery (Independent)

"I have never felt such a sense of distrust and anger between the financial sector and the rest of the economy." (Guardian)

Expert asset valuation skills are very much in demand (HedgeWorld)

From investment banker to ice hockey coach (Financial News)

Union not happy about Citigroup pay rises (Dealbook)

"People ask me, ‘How are you?’ I answer, ‘I’m fine’. But it’s not always true. It's only a matter of time. I will be unable to meet my basic needs: food, healthcare and shelter. The man sitting in this courtroom robbed me . . . He discarded me like roadkill . . . Forgiveness for now will have to come from someone other than me." (Times)

ABN Amro banker found shot dead (Bloomberg)

Merger to create Japan's sixth largest banking group (Financial Times)

Financial advisers done good (Investment News)