Old-Style Big Bank Trading Is Gone: Albertson

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Jan. 17 (Bloomberg) -- Robert Albertson, chief strategist at Sandler O’Neill & Partners, discusses structural changes to the big banks on Bloomberg Television’s “Bloomberg Surveillance.”

The big investment banks.

Trading of that nature is gone.

They are all searching for steadier earnings.

I'm not sure that is so good for everybody.

Look at what happened last year in the bond market.

Analysts are not staring at that thing.

They are looking at the rest of the pieces, which is the future of all these companies.

Them a he talks a more broader theme, you have more.

I want to highlight what james gorman said in the press to released -- in the press release.

He comes about the fourth quarter demonstrating the consistency in business model.

This business model, focusing on equity, trading, and the brokerage business, the stock was the best performer among the 10 biggest global banks.

That is a vote of confidence.

It has all been taken behind the woodshed.

They have come out and focus on what they can do best.

The m and a side, the underwriting side, it is a natural response.

I am impressed with how resilient they have become.

It doesn't matter, they pulled it off.

Now that they are focusing on the equity side, what litigation issues remain outstanding that could knock them down?

, history.

-- history.

It is a rather unfortunate game.

It is far cheaper to sell the -- to settle.

That is causing half the problems and credits.

The large banks are being hit.

We are training capital from the system.

With your tickets of experience -- with your decades of experience, would you tell someone -- would you tell a 25- year-old or 27-year-old going into banking today?

I would suggest they wait a few years.

Let me rephrase this.

Some family friend is going to call up albertson and say, would you talked my dollar?

-- talked my doll -- talked to my daughter?

We have a challenge here.

If you take four days a month off -- it is a vastly different business than it was 10 years ago or 20 years ago.

That doesn't mean it is not the right place to go but you have to go in there a lurch.

-- go in there a lurch.

-- go in there alert.

We have much more on banks and a lot in business.

Coming up, new homes tumbling as a big banks.

We see originations dropping 26% in the fourth quarter.

If you miss any of our interviews, you can watch them

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