The week that witnessed the passing of one of Wall Street’s legendary dealmakers, Bruce Wasserstein, also showed signs that banks’ fortunes have been revived. Goldman Sachs and JP Morgan are profiting handsomely from their investment banking divisions as competitors struggle to recuperate fully. Citigroup, which was pressured by US politicians into selling its money-making Phibro commodities unit, is doing less well.

In Europe, French bankers have a new spring in their step as Crédit Agricole became the last big bank to escape the government’s clutches. Swedish banks are also looking stronger after a second successful rights issue by Swedbank in 12 months suggested that investors think Baltic trembles will not prove fatal. But just as banks are being resuscitated, companies are increasingly looking to tap investors directly through corporate bonds, a trend that may continue beyond the credit crunch.