I remember well the so-called PR ‘shake-outs’ in the early-90s recession. In our current global financial mess, why should anyone be shocked by the demise of banks?
We hear that economic cycles provide the ‘correction’ that’s built into capitalism. Excesses and inefficiencies are punished ruthlessly by the market.
To be sure, there will be yet more PR shake-outs in this latest round of economic corrections. No-one will be surprised by the wave of bankruptcies, increased unemployment and ‘restructuring’ of industry.
To see esteemed names in the banking sector disappear comes as a surprise and must make most of us a little uneasy, especially as their activities (some say) underpin all our day-to-day financial doings. (Others would argue that commercial banks are little more than parasites who had what was coming to them.)
The fact is, most banks will come out of this alive and ready for the next round of capitalist capers. Some may be chastened. Some may be gone. But aren’t they simply suffering the same fate that the rest of business goes through every time a recession inevitably rolls round?