A recent article on the Wall Street Journal’s website has a nice piece on the UBS Bank. I’ve seen some of the bank’s commercials, and it appears as if the bank is trying to portray itself as a friendly place for young bankers. However, the bank is actually very hostile to independent banking, and it has been very difficult for a number of years to get a bank to recognize the value of an independent bank.
UBS Bank has always stood for independence. One time in the late 1990s, it was a member of the banking establishment. It was founded in the United States, then in the United Kingdom. We are a small, independent bank still.
And even though the CEO of UBS bank, Robert Skidelsky, himself says he’s a “friend of bankers,” there are actually very few people who are. It’s been a rough few years for independent banks, and the ones that are trying to rebuild their image are working very hard to do so.
One of the reasons why independent banks have been so hard hit has been the stigma they have faced in the past few years. The idea that they are not as independent as they once were is a constant battle for the public. So much so that banks have even stopped making a profit (at least the ones with huge amounts of capital) because they are afraid of being accused of being too “independent.” But it’s not just the public that is confused.
Banks are trying to rebrand themselves to be more “independent” but that doesn’t mean they are all on board. There are some who still want to be seen as “big” banks while others try to avoid the stigma of being independent. Many are trying to get back to being “big” but they still want to be seen as independent because that is what they think people will take from them.
Exactly. That’s the point. These banks are trying to get back to being big banks but they still want to be seen as large entities and that is what they think will work to their advantage. Their message is that they want to be seen as a “big” bank but they might need to grow up a bit. But if they don’t, then they will be seen as little businesses with no real ability to grow.
One of the major problems with the idea that we are all just businesses is that it is hard to see how businesses could be profitable. It’s easy to just think of yourself as an employee but when you are an employee you are working for a specific company. It’s hard to think of yourself as an individual. In fact, banks are the epitome of the problem. A bank is a company but a bank is also an institution with a capital structure.
Basically, banks are corporations with employees. Its a good thing they are corporations but they are also institutions with a capital structure. Banks do not have it easy. When they are on a stock exchange they are publicly traded companies with shareholders, but banks are private companies with no shareholders.
When banks are in trouble, they are publicly traded companies with no shareholders. That’s because if it happens that a bank goes out of business, the shareholders don’t get their money back. In fact, the shareholders lose more than they would if the bank still existed. So what’s the difference between a bank and a corporation? A corporation is owned by people and the assets are owned by the shareholders.