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 Managements 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.