Britain is pulling out of investment banking – and so it should

The City should go back to what it used to do well, says Matthew Lynn - and forget about investment banking.

It is hard to see how Barclays can hope to stay in the top division of global investment banks much longer. Costs are rising, revenues aren't going up, and chief executive Antony Jenkins is under pressure to find a way out. With RBS also in full-scale retreat from the capital markets, the City may soon have no major British investment bank.

While a few people may regret that, the reality is that the UK has been a failure at investment banking and it would be better if it got out now, before it does any more damage.

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Matthew Lynn

Matthew Lynn is a columnist for Bloomberg, and writes weekly commentary syndicated in papers such as the Daily Telegraph, Die Welt, the Sydney Morning Herald, the South China Morning Post and the Miami Herald. He is also an associate editor of Spectator Business, and a regular contributor to The Spectator. Before that, he worked for the business section of the Sunday Times for ten years. 

He has written books on finance and financial topics, including Bust: Greece, The Euro and The Sovereign Debt Crisis and The Long Depression: The Slump of 2008 to 2031. Matthew is also the author of the Death Force series of military thrillers and the founder of Lume Books, an independent publisher.