The FT has a 3 part series on the turmoil and decline of the banking industry. There are 3 scenarios: 1) is that this is just a blip induced by excessive regulation; 2) that it is merely a return to normal after an exceptional pre-crisis boom; 3) suggests the slow death of banking
It is more than seven years since the height of the financial crisis, but the run of disastrous banking news during the past few weeks has revived bad memories. Profit warnings, mass job cuts, share price plunges and defensive capital raisings have abounded. With the aftershocks of 2008 still hitting the global economy — and central banks in the US and UK shying away from normalising ultra-accommodative monetary policies — banks, formerly seen as the powerhouses of growth, are under pressure on every side. Regulation is piling up. Competitors are stealing business. And many lenders are shrinking fast. Is banking in terminal decline?