…is best captured in this quote from this article, Morgan Stanley Considers Merger With Wachovia:
“executives like John A. Thain, the chief executive of Merrill and a former Goldman executive, say investment banks will need large bases of deposits to shore up their capital for times of trouble.”
The problem is, capital is moving across the world, to China and India. It’s the Asian banks that will have more of the capital as the years pass, not the American banks. The Asian banks will be the ones that grow in the near future, provided that they can run their affairs wisely.
Smart People I Know 