Too Big Not To Re-Organize?

My favorite things in life don’t cost any money. It’s really clear that the most precious resource we all have is time.- Steve Jobs

As the European debt crisis festers, existential questions are being asked of the large global banks. From a corporate perspective I believe these threats, while real, are somewhat overblown. The governments of Western Europe will not let the big banks fail and nationalization, a real possibility, will most likely have little impact on core banking services provided to corporates. In the US, Dodd-Franks guarantees the big banks won’t fail. So, is there no reason for corporates to be concerned about the services they obtain from the large banks? Yes, there is. All of the large banks are facing regulatory and economic driven changes (e.g. Basel III, European debt crisis, etc.) and all of them will be re-organizing and getting into or out of multiple lines of business over the next couple of years. Products and services which represent a small percentage of bank revenue will be on the chopping block as banks shuffle the deck and evaluate their product investments and returns on those investments.