Finance: After the Golden Age

Even after the passage of new financial regulations in the United States, the Dodd-Frank Act, and the publication of the Basel Committee’s new capital requirements, the financial sector’s prospects over the next few years remain highly uncertain. Quite apart from their concerns about the robustness of the rebound in the economy, investors are uncertain about many financial firms’ business models, and about the future size, shape, and profitability of the financial sector in general.