End of investment banking? (1 Viewer)

[MasterPUA]

The conversion of Goldman Sachs and Morgan Stanley into commercial banks is being proclaimed by some as the end of investment banking.

I want everyone's predictions. What does Paulson's bailout mean for the banking industry as a whole?

Will hedge funds suffer a critical blow in terms of regulation?

Have we seen the end of power house ibanks without a deposit base? Has Glass-Steagall become no more than a 75 year old roll of dunny paper?

How insulated is the Australian sector?

My view: In the US, the banking industry has changed forever. Americans will subsequently have a sturdier but less innovative financial industry. Remuneration and bonus structures in ibanks will necessarily change - it is one thing to have shareholders whingeing about million dollar bonuses. It is another thing entirely to have Mum and Dad depositors kicking up a stink.

 

[sthcross.dude]

Investment banking operations will continue being carried out at similar levels.

However, the trend seems to be towards these operations being undertaken by investment banking divisions of major banks rather than by institutions which are exclusively investment banks.

 

[dood09]

no
yes
no
it hasnt

 

[skynet89]

sucked in.

 

[Omnidragon]

they're just becomming like DB, UBS, Citi, HSBC, JPM.
don't see where the end is

i think what you mean is the end of the broker-dealer model