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Return on Capital For Universal Investment Banks: Broken Models

Investors are now turning from return OF capital to return ON capital for the banks. The global universal investment bank model is broken as their ROCs are now between zero and 1% and this is year six of the GFC.

These banks are

1.Issuing staggering amounts of bonds to create unsustainable amounts of leverage
2.Trying to make money in businesses which are, one by one, being eaten away by Silicon Valley innovation
3.Jousting with malcontented , fire-breathing regulators;
4.Making expensive settlements for criminal activity.

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