from Bloomberg:
HSBC Chief Green Sees Financial Market Power Shifting to East By Doug Alexander
Sept. 5 (Bloomberg) -- HSBC Holdings Plc Chairman Stephen Green sees financial markets shifting irreversibly toward Asia as emerging markets grow faster than the rest of the world economy.
Wall Street ``will no longer be the center of the universe,'' and while London won't shrink, it's likely to lose market share, Green said today during the Spruce Meadows Changing Fortunes roundtable in Calgary. He singled out China's banks for good risk management and corporate governance.
Banks and securities firms around the world have reported losses of more than $500 billion tied to the subprime meltdown, according to data compiled by Bloomberg. Almost all of the damage has occurred at companies based in Europe and the U.S. Markets remain ``volatile and fragile'' and banks are reluctant to lend because of increased risk, Deutsche Bank AG Chief Executive Officer Josef Ackermann told the gathering.
The world's biggest financial firms have been forced to raise more than $360 billion to replenish reserves, Bloomberg data show. Writedowns and losses at Deutsche Bank, Germany's largest, have been $10.3 billion, while HSBC's total $27.4 billion.
Gordon Nixon, CEO at Royal Bank of Canada, the nation's biggest bank by assets, called conditions the worst since the Great Depression and said lack of liquidity, rather than credit quality, is a bigger issue.
Bank of Nova Scotia CEO Richard Waugh said the global credit crunch is ``the worst we've ever seen'' and that liquidity had been mispriced for years without enough regard for risk.
A multi-decade era of relatively easy credit is ``over'' and borrowing will be tougher, Nixon said, forcing lenders and companies that borrow to adjust their business models accordingly.
http://www.bloomberg.com/apps/news?pid=20601087&sid=a7_nACEQnBlQ&refer=home