I have long wanted to write something really bad about the too big to fail banks. I guess I shouldn't wait any more.
For the longest time I have been suspicious about their ability to make money year after year. They must have obtained some unfair advantage. I didn't know how to work the numbers (banks are such complex creatures) but my gut feel was their advantage of size, cost and reach was insufficient for their extraordinary profitability.
Then the tide went out with the Lehman triggered financial crisis. The truth is coming out.
Basically they rigged the markets. There is nothing new or creative in their methods. Completely old fashioned They were vile and corrupt. The Swiss will sent some UBS and other bankers to jail. The Americans would just impose huge fines and this they can afford with some pain. What they can't afford is business as usual will stop and so profitability will go down the hill. They had never learned to compete fairly.
The Plus 1 is another vile bank - Barclays. The investigation isn't completed yet.
Already the best and brightest prefer to go elsewhere especially Silicon Valley. Over here our graduates are behind the curve.
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