Why is everyone concentrated on GS, MS and not UBS, DB, CS?
Why is everyone concentrated on just GS/MS?
I understand that they are stand-alone investment banks but what makes UBS, DB, and CS so much different?
What benefit do UBS, DB, and CS get from being European based?
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It's about bank
It's about bank deposits/commercial banking. GS and MS don't have them.
It ain't Europe
The model that has become questioned is the whole 20 to 30 times leveraged trading book model without a commercial/retail bank to back you up. This is why Citi, UBS, CS, DB, Barclays, JPM, and BofA haven't collapse and to some degree have been able to capitalize on this crisis. All of these institutions have large exposures to "bad" assets, yet they have a buffer of capital that Lehman, Bear and Merrill lacked.
In other words, there is currently a crisis of confidence in the markets, whereby if you are completely dependent on rolling overnight paper to support a hugely leveraged trading book, you can easily collapse.
Don't focus on location, there are plenty of institutions who are well positioned to gain from the current market follies. At the end of the day, the real prize is having a firm that survives this mess.
Because this is a US-based
Because this is a US-based website. Simple as that.
I don't think the majority
I don't think the majority of people here realize that it is ILLEGAL to use deposits to finance trading activities. Adding a commercial bank will do very little for GS or MS, other than calm down IRRATIONAL investors
Beta1, What the F are you
Beta1, What the F are you talking about? I believe the questions was in reference to the domestic/international perspective beyond this website as to why MS/GS are under such scrutiny and suffering adversely from lack of confidence (more so than their peers).
Good try though.
Bottom line is that the
Bottom line is that the spotlight is on the american INDEPENDENT investment banking model right now (i.e., Bear Stearns, Lehman, Merrill). Citigroup, JPMorgan Chase, UBS, Credit Suisse and Deutsche Bank all have some DEGREE of a commercial bank attached to them. This is why they are under less scrutiny in this market environment right now. The market is looking for plain old boring STABILITY. And what else screams boring stability better than having a commercial banking arm?
Any questions?
first post
Because this is a US-based website. Simple as that.
best first post ever
If you are implying that
If you are implying that most investors are rational, then you are severely misguided.
my bad. I misunderstood.
my bad. I misunderstood.