Foreign news: Brexit wait-and-see slowdown hits megabanks' fees, banks agree to settle US bond price
The UK's vote to leave the European Union will add to revenue challenges faced by European global trading and universal banks, Fitch Ratings says. Credit Suisse Group and Deutsche Bank are the most reliant on capital markets activities, with sales, trading, underwriting and advisory revenue at about 50 per cent and 40 per cent of total group revenue, respectively. The Brexit vote has also complicated staffing decisions, Fitch added. The Financial Times, citing "consensus forecasts", reports a similar trend in the US. This year just one of the big six US banks - Wells Fargo - is now expected to make a double-digit return on equity, FT.com says. US District Judge Victor Marrero has given final approval for settlements totalling US$100 million between plaintiffs alleging price-fixing in the municipal bond industry and six defendants, including Societe Generale, National Westminster Bank and UBS. This leaves only those who opted out of the class to litigate the seven-year-old case, reports US specialist legal news service, Law360. Judge Marrero also signed off on US$33 million of attorneys' fees for the three plaintiffs' firms that represented investors including municipalities and public entities, according to Law360.