The latest defense of the universal bank model comes from Morgan Stanley CEO James Gorman.
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For shareholders, too, the universal bank may offer false comfort.
The woes of Citigroup put paid to the myth of the indestructible universal bank, even as the success of Canada's banks (see article) showed that a system of a few domestic giants can work.
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This strategy will be centered on our leading wealth management businesses and our position as the strongest universal bank in Switzerland.
In recent years the trend has been towards some form of universal banking, with the same bank providing both retail and investment services.
Some government help would almost certainly be needed to get a universal bank off the ground.
And it is interesting that, for him, the fundamental question is whether it is possible to have an effective single code of conduct for a universal bank like Barclays, when the motivations and instincts of investment banking traders and branch managers are so different.
He is similarly concerned about the impact of the new Universal Credit paid into a bank account and accessible only online.
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But most investment banks do not have the luxury of also being a big universal bank.
Having had pretty much universal agreement from the IMF, World Bank, OECD and others that now was not the time for retrenchment, we are coming to that time when addressing the U.S. budget deficit will be a priority.
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However, such an overhaul should not have to mean a replacement or upgrade to existing systems, but rather a universal platform that connects throughout the bank, interrogating all the necessary data on demand, and using the latest high speed technology.
Take a transatlantic combination of a lumbering, accident-prone universal bank with a prickly, free-wheeling investment bank, and only the foolhardy would bet on success.
In Manila, for instance, the World Bank had thrice lent money to the municipal utility, only to find that universal coverage remained a distant goal, much of the cash was siphoned off and half the water was still disappearing through leaks or theft.
Four big universal financial groups, created from the merger of six keiretsu into three, together with a regional bank alliance.
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