In the case of the investment banking industry, we now know--with blinding hindsight--that such a horror is possible.
He sees the merger as evidence of the uncertainty surrounding the investment banking industry, amid regulatory reform and an uncertain global economic outlook.
Over the years, Buffett has strongly criticized the investment banking industry.
With more regualtions on proprietary trading expected in the future, it makes sense to expand other business lines in order to remain competitive in the investment banking industry.
In chastising the way the investment banking industry works, the New York Attorney General who led the charge against the banks, called for a cultural reform and sweeping structural changes in the way the business operates.
But how does this happen in an industry as intensely competitive as investment banking?
And the credit crunch seems to have resulted in fewer disasters in the industry than it has in the investment-banking world.
ECONOMIST: Despite mixed results, hedge funds earn a little respect
But it has also posed again a more fundamental question about the industry: can commercial bankers ever succeed in investment banking?
We view Terracciano as a credible independent board chairman with strong banking industry experience, who is well respected by the investment community, Ball said.
An analyst can issue favorable recommendations about industry sectors or individual companies, in order to court investment banking clients for the firm.
An independent panel of academics Monday cautioned Washington against rushing into an innovation-stifling regulation of investment banking, but urged that structures be put in place to ensure the industry itself bears the cost of any future federal bailouts.
But there's one other industry Yin says he is willing to entertain investment proposals for: banking.
Another way investors stand to benefit from industry consolidation is through the publicly traded small to mid sized investment banking boutiques with merger and acquisition and capital raising capability.
Unlike the investment-banking business, in which banks compete internationally for custom, the retail financial-services industry is not yet a global one.
The second shift in the investment-banking landscape is a hollowing-out of the midsized banks as the very biggest in the industry grab a greater share of trading revenues.
New York State attorney general Eliot Spitzer has made some small progress toward cleaning up the industry: increasing disclosure of conflicts of interest and separating analysts' compensation from specific investment-banking deals.
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