The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.
Opinion

Abigail with Attitude: Industry in meltdown heads towards inevitable iceberg

Blankfein might turn out to be one of the great survivors. Nevertheless, I am becoming convinced that the investment banking industry can be compared to the good ship Titanic, silently advancing through the dark night, towards the immutable iceberg.

Bank CEOs and bank boards have done their shareholders a terrible disservice: they refused to contemplate a plan B – what to do if there was no sustainable economic growth after the rebound in 2009. And, of course, regulators have twisted the knife by insisting on higher capital requirements and lower leverage ratios.

One mole moans: “This is an industry in meltdown.” As we wait to see if European politicians will proffer anything more substantive than woolly words, the European banking industry stands on the edge of a recapitalization precipice, and the results from American financial institutions will be poor.

For how much longer can the industry justify an egregious compensation structure that elevates the pocket-books of employees and mocks the interests of shareholders? 

Bankers feel the pressures of the Blackberry crumble 

For BNP Paribas, there are more questions than answers

Woody stands out as power crowd shun new Savoy Grill

Watch out for Weinberg G3 in Goldman succession stakes

Industry in meltdown heads towards inevitable iceberg

What do you think? News and views please to abigail@euromoney.com  

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree