May you live in interesting times” runs the Chinese curse and for the world’s banks, as Citigroup’s announcement of 11,000 job cuts and a $1bn restructuring charge shows, the times do not get much more interesting than this.

Thanks to self-inflicted wounds and consequential external pressures, the leveraged business model that defined the universal bank is broken. Regulators require extra capital, less proprietary trading and more transparency of their charges. Liquidity is “in”, leverage is “out”.

Citigroup is not alone laying off staff and redesigning its operating model. RBS and UBS have pulled back from equities and fixed income respectively. Credit Suisse has ring fenced its investment bank. Barclays’ strategy review is set to conclude in the new year and investors are questioning the size, shape and position of its investment bank. Across Wall Street, as senior executives decide how to allocate reduced bonus pools, the year-end compensation review is bringing an added focus to strategic discussions.