Sep 15: The death knell of independent investment banks

The collapse of Lehman Brothers and the takeover of Merrill Lynch could mark the death knell of independent investment banks, according to John Plender, FT columnist. He says regulators may force banks back to a 1950s-style utility system with tougher requirements on capital adequacy, leading to lower risk and profitability. He adds that the US Federal Reserve - by not bailing out Lehman - has started to address the problems of moral hazard in the banking sector. John Plender is also chairman of Quintain plc.