Prime Brokerage

However, they added that Citi had not experienced unusual movements in deposits, corporate balances or prime brokerage accounts.

"We've seen a very big deleveraging from managers, " said the head of one large prime brokerage.

Traditionally, Bear Stearns, Goldman Sachs and Morgan Stanley have had the dominant prime brokerage units both in the US and overseas.

At the management level , according to Mr Steinberg, prime brokerage is now considered one of the most attractive for senior executives .

Goldman Sachs, Morgan Stanley and Bear Stearns are widely acknowledged to have the largest prime brokerage businesses.

Hedge funds , increasingly in need of a global platform, were deserting Bear's once proud prime brokerage franchise .

One of Bear's biggest attractions for J. P. Morgan is its prime brokerage business which caters to hedge fund clients. J. P.

Hedge funds and others are trading derivatives at a furious pace, providing a further lift to the banks' prime-brokerage businesses.

Hedge funds and others are trading derivatives at a furious pace, providing a lift to the banks' prime-brokerage businesses.

London was the home of Lehman's prime brokerage business that serviced hedge funds.

The prime-brokerage arms of investment banks also face a number of potential conflicts of interest.

After that comment, BofA pared back its proprietary trading activities and sold its prime brokerage business serving hedge funds.

The new group sits outside the bank's prime brokerage unit.

That shook the prime brokerage industry, as funds scrambled to unwind trades with the riskiest counterparties.

The prime brokerage, which provides hedge funds with custody and loans, and assists short selling, is highly rated by many managers.

"When it does, we need to re-size our prime brokerage business, " Mack said in a CNBC interview.

Others, such as prime brokerage, may have fallen away steeply in the past two months but brought in plenty in the early part of the year.

A Morgan Stanley spokeswoman declined to comment on the prime brokerage business.

If a deal is reached, Mr Dorman would likely join Deutsche in a senior role, perhaps as head of US prime brokerage.

Prime brokerage has been haemorrhaging clients to Goldman Sachs and others.

One prime brokerage executive admits that part of the reason for the development of the Greenwich hedge fund community is vanity.

"This development is calling into question the future of the UK prime brokerage market. "

P. Morgan, which lacks a prime brokerage unit and has long coveted one.

As a result, competition for prime brokerage talent is fierce.

"The basic proposition of prime brokerage is that they provide a highly convenient point of entry, " says Mr Gollen.

Less client trading will cut into profitable businesses such as prime brokerage.

"Many investors confuse flight to size with flight to quality, " says Sam Tabar, head of prime brokerage in Hong Kong for Merrill Lynch.