Tuesday, December 9, 2008

The party is over for the next 20 years says BCG

Boston Consulting Group, one of the leading global management consulting firms, warns corporate banks of the "new normal" in the form of slower economic growth, higher loan losses and scarce liquidity.

“The speed with the adjustment that’s happening now is quite surprising,” said Juergen Schwarz, a senior partner at the Boston Consulting Group who wrote the report, said in an interview. “We will revert back to the ‘new normal’ over the next two years and it will stay there for at least the next 10 to 15 to 20 years.”

source: Corporate Banks Face ‘New Normal’ After Slowdown, Report Says
Bloomberg, 12/9/08

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