This could be the death of banking as we know it

Banks may have to abandon market intermediation and keep assets on their balance sheets again. It sounds bland enough, but the implications will be huge - not least the shift of influence eastwards.

John Dizard, in 'Prepare for return of a direct lending world', argues that central bankers believe that securitization is not coming back in any meaningful way in the foreseeable future, and banks will therefore have to roll up their sleeves and do old-fashioned lending in much greater volumes than before.

That may seem like a very bland statement, but it is tantamount to saying that a comet has wiped out most of the mammals and the dinosaurs will rise again.

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