Busted: Bankers and The Global Economy

May 30, 2008

Bankers Creating New Stock Exchange

Filed under: banking, investment, money — Tags: , , , , , , , — digitaleconomy @ 12:04 am

Amidst concerns about rising trading costs in the London Stock Exchange and other European exchanges, investment banks are coming together to create a new system for trading in shares. The new system is to be owned by Citigroup, Morgan Stanley, Goldman Sachs, Merrill Lynch, UBS, Credit Suisse and Deutsche Bank.

Big investment banks are not one to rest on their laurels when it comes to formulating new ways to make money in today’s financial marketplace. The consortium of investment banks have joined hands to create a new European system for trading shares that they expect to rival Europe’s top stock exchanges. The bankers may bring the system online before a new European Union directive on trading in financial products comes into force next month. The new investment banking enterprise is expected to prosper in part because the cost of trading in the US is said to be 80 percent lower than in Europe.

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