Things are changing fundamentally, and fast. Records are breaking every day. We are saying goodbye forever to some institutions we've grown very used to... It's the end of the world as we know it. Howz that feel? Still sinking in no doubt...still sinking...
“NEVER confuse brains with a bull market,” says an old adage. In a bull market, the more debt you take on, the more profit you make. The main concern is not to be holding the stuff when the bust comes. The financial landscape is going to change. First in line for a makeover will be the investment banks.
When I started in the City in the early 1980s, the financial markets were essentially nationally organised. The next 20 years saw a scramble to become global and to span as many markets as possible — from equity to debt to any instrument that could be sold. The profit base — and power centre — of these institutions was their trading rooms.
Yet, looking beyond the present crisis, there are already growing pressures on some of the financial giants to break up. UBS, for example, has divided its operation into three independent units. Citigroup has also been urged to hive off some of its operations.
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