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?
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