tag:blogger.com,1999:blog-5713178645208582139.post4593447477877398899..comments2024-03-22T02:37:15.030-05:00Comments on Macro Musings Blog: The Canadians and Their Resilient Banking SystemDavid Beckworthhttp://www.blogger.com/profile/04577612979801459194noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-5713178645208582139.post-78025987858237506112008-10-30T21:34:00.000-05:002008-10-30T21:34:00.000-05:00I think the unit vs branch banking story has valid...I think the unit vs branch banking story has validity for the 1930s, but I feel that recent divergence between countries may have more to do with how diligently regulation was pursued. And we are seeing more global diversification of banks. But Nassem Taleb recently argued in the Black Swan that this is actually bad. On PBS last week<BR/>he said:<BR/>NASSIM NICHOLAS TALEB: Let me tell you what isAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-70852194588613131322008-10-26T07:51:00.000-05:002008-10-26T07:51:00.000-05:00Paul:Branch banking may not eliminate all problems...Paul:<BR/><BR/>Branch banking may not eliminate all problems. I believe, though, had their been no branch banking at all the banking problems would be even more severe.<BR/><BR/>If one follows the diversification justification for branch banking, then what is really needed is a international bank with branches across the globe. This would be the ultimate form of diversification and presumably David Beckworthhttps://www.blogger.com/profile/04577612979801459194noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-9075735266015265422008-10-17T13:28:00.000-05:002008-10-17T13:28:00.000-05:00Couple of observations, that you might care to com...Couple of observations, that you might care to comment on?<BR/>1) I think UK has pretty extensive branching too, but the banking system (espec Royal Bank of Scotland) is one almighty mess.<BR/>2) Some of the smaller US banks are doing just fine - like IBC for instance. They just didnt get involved in the subprime mess. By contrast, the bigger (Too big to fail?!!) banks with more extensive Anonymousnoreply@blogger.com