Friday, September 19, 2008
Old-fashioned banking rises as financial landscape changes
The balance of power on Wall Street is shifting as investment banks fall out of favor and commercial banks emerge as the more attractive business model. A year ago, five major investment banks dominated, but only two of those -- Goldman Sachs and Morgan Stanley -- are left. Meanwhile, commercial banks such as Bank of America, JPMorgan Chase, Deutsche Bank and Banco Santander have become more powerful. Banks are going "back to basics -- to, if you like, the core purpose of the system with less bells and whistles", said Douglas Flint, finance chief at HSBC. "There is a recognition that when the dust settles ... the construct of the industry will be different."
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