Banks pushed to segment under Sifi framework

Author: Danielle Myles | Published: 17 Nov 2011
The new investment bank model to emerge from tougher measures imposed on systemically important financial institutions (Sifi) could be a scaled-down and fragmented version of today, according to Moore Capital Management’s Matthew Carpenter.

Just three years after many banks switched to bank holding-company status to take advantage of liquidity and Federal Reserve support, the appeal of less onerous regulation will make them explore breaking into smaller entities.

“There are all sorts of options open,” said Carpenter, formerly with Citigroup, speaking at the Securities Industry and Financial Markets Association (Sifma) annual meeting last week.