1. QUESTIONS AND NOTES The merchant banking provisions of GLBA may play a role in shaping...

 

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1. QUESTIONS AND NOTES The merchant banking provisions of GLBA may play a role in shaping the structure of financial institutions in the future. Banks could be managed and run more like European banks that have traditionally been merchant banks as well as lenders and depositories. any, Another aspect of merchant banking is that equity investments entail significant market risks that increase the volatility of earnings. What, if dangers do you see in the growth of merchant banking by American banks? While the market turmoil during the financial crisis is still fresh, are banks likely to flock to merchant banking investments? 2. The United States has traditionally been concerned with the concentration of financial power in a few large institutions. Do you think there is any justification for that concern especially in the light of the expanded powers for merchant banking? 1. QUESTIONS AND NOTES The merchant banking provisions of GLBA may play a role in shaping the structure of financial institutions in the future. Banks could be managed and run more like European banks that have traditionally been merchant banks as well as lenders and depositories. any, Another aspect of merchant banking is that equity investments entail significant market risks that increase the volatility of earnings. What, if dangers do you see in the growth of merchant banking by American banks? While the market turmoil during the financial crisis is still fresh, are banks likely to flock to merchant banking investments? 2. The United States has traditionally been concerned with the concentration of financial power in a few large institutions. Do you think there is any justification for that concern especially in the light of the expanded powers for merchant banking?

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Dangers and Concerns of Merchant Banking Growth in the US Increased Market Risk and Volatility Youre right a significant danger of merchant banking by American banks lies in the inherent market risk a... View the full answer