More out-of-town perspective on Wall Street’s future

| NY Torch

From Stephen Green, chairman of London-based HSBC, the world’s largest bank: “I believe the direction is clear: regional capital markets will develop and more of the capital generated in the fast-growing emerging markets will stay closer to home on the future.”

Green also said that the highly leveraged finance model is “bankrupt” and that bubble-era investment-banking bonus structures “encouraged too much opacity and excessive risk-taking.”

On the other hand, he said that securitisation markets wouldn’t vanish completely, since “you cannot bring the whole of the world’s capital markets back onto banks’ balance sheets.”

[credit FT, article not online,, and Telegraph]