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Retail banking may not be seen as a very nice industry, but it's not the one creating the Anglo Disease.
And landing to relatively small organic farming activities will be retail, almost by definition - given how important local conditions are meant to be. In the long run, we're all dead. John Maynard Keynes
What makes investment banking so unusual as an industry is that it is the "workers" (i.e. the investment bankers above a certain pay grade/ in certain jobs) that capture most of the income. A very small number of people get a massive benefit from a system whereby other companies are rules for financial profit and engage in large financial transactions (mergers and acquisitions, structured financing, securitization of future cahs flows, etc...) from which they can capture a big chunk of the income generated/captured.
This is the easiest way to get very rich very quickly (the other way is to be a high level manager of a big company, essentially the mirror image of the other - in effect the two sides collude to capture money from the company's future via financial engineering). And this is what drives the financiarisation of business - massive personal interest. In the long run, we're all dead. John Maynard Keynes
Yes, I figured that's what you meant.
Now, will these retail banks be retail operations themselves, or will the profit generated by the bank be captured by the high-level managers of big banks? Can the last politician to go out the revolving door please turn the lights off?
The thing is to limit the influence of investment banking on other industries, and one way to do that is maybe to take a harder look at mergers and acquisitions. In the long run, we're all dead. John Maynard Keynes
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