The large global banks have achieved the dominance of the financial industry they have worked for, in many cases with their lobbyists in Washington. Smaller regional banks were pushed out of existence or forced mergers with the giants. Local community banks which in many cases were the only source of lending for small companies have closed. Now the big, money center banks have replaced them. But the money they suck out of the community is not reinvested there. That money is used for speculations in highly leveraged derivatives, loans to emerging countries, etc. But it is not used for the community.
Now the large global banks have a dilemma: they got what they wanted, but now have trouble making any profits in the low interest rate environment. Speculation has backfired in many cases, wealth management has declined sharply with the stock markets, emerging country loans are in trouble, as are energy loans, which were thought to be “riskless.”
BARCLAYS: The London Times reported Barclays plans to cut 30,000 jobs within two years as part of an effort to cut costs.