Source: conspiracyarchive.com
A NEW world banking order is taking shape. Many proud, independent financial institutions with century-old legacies are being bought out. With a crisis made in the US and with its roots in Wall Street, the standalone investment banking model seems dead. Only Goldman Sachs and Morgan Stanley are likely to survive, but not before engineering some form of tie-up with a commercial bank.
But US banking is not dead. With more than 4000 banks in the US, consolidation and liquidations on a tectonic scale would still leave sufficient participants to ensure the sector remains lively and competitive.
In Europe, flawed business models are also being exposed. The over-reliance of British mortgage banks on wholesale deposits to fund long-duration assets has seen a virtual wipe-out in the sector. The principal beneficiary has been Spanish giant Banco Santander, which has acquired a 13% market share in the UK home loans market and is now one of Europe’s largest banks by market capitalisation. With many UK banks turning to the government for capital support, it is likely that the government will demand a more supportive role from the banking sector, especially towards small business in future.