When the dust settles, the big banks will emerge stronger than ever. Should the auction firms start
Longacre
Posts: 16,717 ✭✭✭
Personally, I think it is terrible that venerable banking institutions, such as Bear Stearns and Lehman Brothers, have gone the way of the dinosaur. However, I think that the big corporate conglomerates that have gobbled them up will be bigger and better than ever, and the banking industry as a whole will be stronger and more robust. Sometimes, bigger is better, because it allows you to weather the storm due to your financial strength.
Personally, I think there are too many coin auction firms (not even counting the electronic auction firms). I have no inside knowledge about these firms, but one can only assume that certain of the firms are financially stronger than others. Given the uncertain economic times, and the looming coin recession, does anyone think that it is finally time to have some consolidation in the coin auction business, and have a fewer number of firms, but which are much stronger? On a selfish note, I would want to avoid the government bailing out one or more of these coin auction firms, so perhaps now is the time to consolidate and strenghten, before it is too late. What do you think?
Personally, I think there are too many coin auction firms (not even counting the electronic auction firms). I have no inside knowledge about these firms, but one can only assume that certain of the firms are financially stronger than others. Given the uncertain economic times, and the looming coin recession, does anyone think that it is finally time to have some consolidation in the coin auction business, and have a fewer number of firms, but which are much stronger? On a selfish note, I would want to avoid the government bailing out one or more of these coin auction firms, so perhaps now is the time to consolidate and strenghten, before it is too late. What do you think?
Always took candy from strangers
Didn't wanna get me no trade
Never want to be like papa
Working for the boss every night and day
--"Happy", by the Rolling Stones (1972)
Didn't wanna get me no trade
Never want to be like papa
Working for the boss every night and day
--"Happy", by the Rolling Stones (1972)
0
Comments
I don't agree with your premise. The size of the bank had nothing to do with their downfall, and was really due to bad investments and greed (P.S. it's still not over).
1. Investment banks – mostly the ones you see getting pounded
2. Commercial banks – mostly regional and local banks that deal with businesses and consumers.
Investment banks tend to be all over the place in safety but that’s difficult to judge because of the way they report income and the absence of most objective regulation.
Most commercial banks (aka “retail” banks) are OK except for the ones that made many high risk loans in real estate development and fraudulent mortgages. Speculation and confusion has tended to push down share prices of commercial banks even when they have little exposure to problem loans.
Prior to the Banking Act of 1934, a great many banks were both investment and retail, thus damaging performance when one part of their portfolio deteriorated. Roosevelt administration laws eliminated much of the speculation and self-dealing once common in commercial banking.
How is Lehman Brothers venerable? That company was created in the year 1993. It propelled itself forward on a mountain of credit at a time of low interest rates, leveraging itself higher as it went. That company chose their path willfully. The name sounds old. It is a deception. I could say more. Stifle.
I sure hope someone on the inside who can see all of what is going on writes a good book about it in a few years.
[edit] Or not. Whatever. Let me try not to project my stress onto this forum.
That said, consolidation is typically a reactive action, rather than a preemptive one, so I don't think the premise of your question makes sense. Furthermore, I'm not sure that consolidation of auction firms would really increase their competitive position.
Respectfully submitted...Mike