Banks face slump in trading revenue as 'bad' volatility bites

Investment banks are suffering after a steep decline in oil prices and worries about China's economy triggered a wave of volatility that swept through financial markets in the first six weeks of the year. Investment banks, especially those in Europe, will fail to meet their cost of capital over the next two years, prompting further restructuring that could put up to 5 percent of market share up for grabs, similar in size to the wave of restructuring in 2012, according to Morgan Stanley analysts.