Page 311 - Bank Case Studies

1. Don’t get caught - HSBC

2. Use someone else’s money - Barclays

3. Blame someone else - WFB

Although all the banks under consideration in this paper

could rightly fall foul of all three rules especially the first

one, as they were all caught, cumulatively they all, with

perhaps the exception of TSB, engaged in multiple

variations of the last two rules.

Part of the problem was the changing regulatory

environment that forced the banks to spilt the investment

banking from their retail bank. From this stemmed

compliance pressures which if not difficult to meet were

certainly influential in tactical developments for example,

RBS’ GRG unit and its PPFAs

Regulatory Separation
of Banking Business
Areas

Traditional Bank Investment Bank Asset/Wealth

Management

Advisory and Underwriting

Consumer
Commercial
Trading

Prime
Interest & Other
Brokerage