Companies that grow for the sake of growth or that expand into areas outside their core business strategy often stumble. On the other hand, companies that build scale for the benefit of their customers and shareholders more often succeed over time.
Remember that banks aren’t markets. The market is amoral. The market doesn’t care who you are. You’re a trade to the market. The market will sell you if they think you’re riskier. Banks didn’t do that.
Don’t do anything stupd. And don’t waste money. Let everybody else waste money and do stupid things; then we’ll buy them.
I hate the word universal, because I don’t know exactly what it means. The question is, does it work for the client? Travelers was a diversified, financial conglomerate that did very well. The businesses had nothing to do with each other.
I’m not going to name anybody, but I think there are about five to 10 global institutions that will emerge as our primary competitors across the board. They’re adjusting to this new world, like we are.
Businesses can be opaque. They are complex. You don’t know how aircraft engines work either.
My daughter asked me when she came home from school, “What’s the financial crisis?” and I said, it’s something that happens every five to seven years.
You read constantly that banks are lobbying regulators and elected officials as if this is inappropriate. We don’t look at it that way.