Banks and Banking in Year 2016

Here’s what’s happened to the “big” banks and banking in general since the Great Recession. has published a piece by Yalman Onaran called “Citigroup, HSBC Jettison customers as Era of Global Empires Ends.”

Executive Summary of article

  • Citigroup®
    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?

Author’s note, 9/24/16: Here’s a couple of articles on the Wells Fargo fiasco:
Hole dug by Wells Fargo Bank
How fragile is our Financial System?


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