The primary component in the success of US banks over European banks is that European banks struggle to do business in the US. This is because the jingoist zeal in the US puts up massive hurdles in the way of any foreign bank.
In other words, Americans only buy from Americans. This is why "Twenty-five years ago, European banks charged into the U.S. They bought storied firms like Donaldson, Lufkin & Jenrette and Wasserstein Perella and dangled big paydays for rainmakers" - to convince Americans they were buying from other Americans.
This allows American banks to build up a war chest domestically and keep the fight in Europe and the developing world - while there is no fight in the worlds largest economy. China is doing the same.
I'm really not sure what you're talking about. I cant go open a bank account at HSBC or TD today if I like. And ING was a thing before they I guess got bought out by Capitol One.
Yeah, this is bullshit. I'm Canadian and we have huge protectionist measures around our financial sector but the U.S. doesn't, which has allowed for companies like TD and RBC to become huge players in the U.S. banking industry.
Europe also runs a trade surplus with the U.S. so it's unclear where this macro trend you think exists comes from either.
The topic is investment banking (not retail banking) but both RBC and TD Bank entered the US market by buying US banks. And this is exactly what I said European investment banks tried to do.
>Europe also runs a trade surplus with the U.S. so it's unclear where this macro trend you think exists comes from either.
Financial services are only a small part of the economy compared to e.g. raw materials. But I'm not an economist/accountant so I don't know where it comes out in the wash as regards trade surplus when a UK subsidiary of a US company makes money in the UK.
I'm also not sure having a completely foreign bank in your country (a foreign bank without a local subsidiary) is a good idea frankly. The Icesave crisis would never have happened here.
In other words, Americans only buy from Americans. This is why "Twenty-five years ago, European banks charged into the U.S. They bought storied firms like Donaldson, Lufkin & Jenrette and Wasserstein Perella and dangled big paydays for rainmakers" - to convince Americans they were buying from other Americans.
This allows American banks to build up a war chest domestically and keep the fight in Europe and the developing world - while there is no fight in the worlds largest economy. China is doing the same.