I suppose this was inevitable, but after the Masters of the Financial Universe finished inflating themselves to gargantuan proportions by tearing apart companies and feasting on their body parts, (aka arbitrage) some bright young MBA noticed that the same principles apply to them.
Apparently the economics of scale that supposedly increase profit and led banks to merge, merge, merge and acquire non-banking affiliates aren’t working out any better for them than for those over-merged companies that they dismantled.
So this is the new normal. Giant megabanks are apparently next on the chopping block, as investors realize that smaller banks are more profitable and less risky.
So small is beautiful, after all.
And in other news:
It’s mammals versus dinosaurs, again, after all these years.