Sunday, April 12, 2009

Finance Today, but What About Tomorrow?

Amazingly, some reporter at the NY Times has discovered a problem in The One's statism.
As Washington cracks down on compensation and tightens regulation of banks, a brain drain is occurring at some of the biggest ones. They are some of the same banks blamed for setting off the worst downturn since the Depression.

Top bankers have been leaving Goldman Sachs, Morgan Stanley, Citigroup and others in rising numbers to join banks that do not face tighter regulation, including foreign banks, or start-up companies eager to build themselves into tomorrow’s financial powerhouses. Others are leaving because of culture clashes at merging companies, like Bank of America and Merrill Lynch, and still others are simply retiring early.

The writer does a lot of spin to make this sound good, and it could well be, in a dynamic, self-reshaping world that has been the US at times in the past.
Somehow I am not convinced that is a model we are heading into again in the near future.


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