A PREDICTION THAT WILL CHANGE THE FACE OF INVESTMENT AND FINANCIAL MARKETS
We predict that due to the current major market turmoil, large independent investment banks will cease to exist in the United States of America.
ONE CHARACTERISTIC OF INVESTMENT BANKS IS THAT THEY OPERATE AT ABOUT 30 TO 1 LEVERAGE…COMMERCIAL BANKS OPERATE AT ABOUT 12 TO 1 LEVERAGE
For this reason and others, we predict that there will be no investment banks in a few years. Pressures from government will force them into the arms of commercial banks.
They may operate in name only within the commercial banks . . .
Continue Reading: MOVING FROM INVESTMENT BANKS TO COMMERCIAL BANKS
