Discover and read the best of Twitter Threads about #GSIBs
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A tale of 2 banks or 2 Country-blocs (US & EU). US banks have managed Regulatory Capital well, reinvested in technology for scale in volatile trading, reined in bonuses and benefit from an un-fractured Retail market with +ve interest rates...1/2...
On the other hand, EU banks have overstated synergy of I-Banking with Corporate Banking, without steady revenues from either, frittered away capital & drove margins to 1-digit RoE levels. All this while facing -ve interest rates & fractured, price-protected Retail markets...2/3
...EU banks, barring ~2, have also failed to capture scale & synergy of Wealth Management with I-Banking, neither focusing on Retail Brokerage Tech (like $MS or $SCHW) or PWM hi-touch (like $C). Wrong focus, delayed timing...3/3!
