Diversifying products and skills
What prompts the creation of London's new financial
conglomerates? And why have most of the securities houses been so
willing to surrender their independence? Clearly, the deregulation of
stockbroking has presented different opportunities to different
financial entities. To a US investment bank, for example, it will
afford an entree to market making and dealing in UK securities without
having to operate through a local broker or jobber. While few have
actually bought directly into firms, they clearly intend to be active
through the creation of their own inhouse teams and then applying
directly to the London Stock Exchange for membership. The general
rationale for this approach is that they can build on existing expertise
and achieve the same goals at lower cost.
To UK merchant and commercial banks - authors of most of
Britain's new financial groupings - acquisition has largely been
predicated by a need...
