Hats off: big bank still brings scale and innovation to finance in London
Hats off: big bank still brings scale and innovation to finance in London
Larsen P.T. Financial Times, 26 October 2006, Start page: 15, No. of pages: 1
Purpose – to look at how the deregulation of the London Stock Exchange has resulted in an increase in entrepreneurial activity in the financial markets. Design/methodology/approach – highlights how the “big bang”in 1986 (deregulation of the London Stock Exchange), resulted in a dismantling of previous regulations and restrictions on doing business in the City of London. Outlines how after the “big bang” London’s financial services became dominated by a small number of large and powerful banks; reports this now changing with the re-emergence of small entrepreneurial firms in the form of hedge funds, private equity groups or boutique advisory firms. Investigates the reasons for the changes; explores the shifts taking place away from the big banks to the smaller investment banks; draws attention to their governance structures; discusses whether the recent wave of entrepreneurial activity is just a cyclical phenomenon; features an article looking at the reactions to the European Union’s markets in financial instruments directive (Mifid) aimed at breaking down barriers to cross-border trading in securities. Originality/value – identifies some of the reasons for the growth of small investment banks.
Keywords: Banking, Financial markets, Financial services, Fund management, Investment funds, Stock exchange
