And Then There Were None

Just wait till tomorrow
I guess that's what they all say
Just before they fall apart
--New Order

On January 1, 2008, the five largest U.S. investment banks boasted a combined market cap of nearly $250 billion. Now, after the announcement that Goldman Sachs (GS) and Morgan Stanley (MS) are reorganizing to become bank holding companies, the top five players have left the field, and the remaining investment banking industry is a lot smaller.

Poof! Just like that, centuries old institutions disappear.

An example of what can occur as a consequence of extreme leverage gone awry.

no positions