“The lights are going out all over Europe: we shall not see them lit again in our lifetime.”

So spoke Sir Edward Gray , British Foreign Secretary during the run-up to World War I. He recognized then that Germany’s aggression and England’s response would radically change the European continent.

I was thinking about this while watching the global financial architecture unravel. As banks, brokers, and insurance companies have failed, the world’s financial lights have been going out.

We’re now facing a significant re-making of our financial system. The Treasury’s ownership stake in over half the U.S. banking system will change the way finance works. There will be more controls and regulations and less innovation.

Some have wondered if this is really necessary. But you can’t put toothpaste back into the tube. The dramatic events of the past month will result in new regulations. For good or ill, the landscape is changing.

Douglas R. Tengdin, CFA
Chief Investment Officer
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By | 2014-09-04T14:02:44+00:00 October 16th, 2008|Global Market Update|0 Comments

About the Author:

Mr. Tengdin is the Chief Investment Officer at Charter Trust Company and author of “The Global Market Update”. The audio version of each post can be heard on radio stations throughout New England every weekday. Mr. Tengdin graduated from Dartmouth College, Magna Cum Laude. He received his Master of Arts from Trinity Divinity School, Magna Cum Laude and received his Chartered Financial Analyst (CFA) designation in 1992. Mr. Tengdin has been managing investment portfolios for over 30 years, working for Bank of Boston, State Street Global Advisors, Citibank – Tunisia, and Banknorth Group. Throughout his career, Mr. Tengdin has emphasized helping clients manage their financial risks in difficult environments where they can profit from investing in diverse assets in diverse settings. - Leave a comment if you have any questions—I read them all! - And Follow me on Twitter @GlobalMarketUpd

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