Just a few days ago, Warrant Buffett made a bold proclamation. He said that, as far as bank failures go, we’re not out of the woods yet. In fact, he even went so far as to say that the temptation to boost profitability by cutting financial corners is so widespread that this kind of problem is going to be whittling down the smaller banks in America for years to come.
Well, I think he’s right. I think what we’re about to see a major period of consolidation in the banking sector. Over the next few years, I expect to see the balance of power in banking shift decisively towards the biggest players in the sector.
This post appeared first on Money Morning – We Make Investing Profitable.