Here’s what’s happened to the “big” banks and banking in general since the Great Recession. Bloomberg.com has published a piece by Yalman Onaran called “Citigroup, HSBC Jettison customers as Era of Global Empires Ends.”
Executive Summary of article
Since crisis has doubled derivatives contracts to $56 trillion dollars.
Focuses on trading.
Focuses on richest customers—high-net-worth individuals
- HSBC Holdings PLC®
Quits “retail” banking and stops serving 80 million customers
Relys more on investment banking.
Eliminated 1,600 U.S. locations in U.S.
Closed 500+ branches in U.K.
“All this retrenchment hasn’t silenced calls to break up big banks. In the U.S., both the Republican and Democratic platforms call for reinstatement of the 1933 Glass-Steagall Act, which separated consumer and investment banking” writes Onaran.
Onaran mentions Internet banking in his article and “that near-zero interest rates have made traditional banking less profitable,” quoting KBW’s Cannon.
All in all, I guess using the U.S. Postal Office as a bank is a pretty good alternative. See my posting entitled “Back to the Future, using the USPO as a bank.” What do you think?