Future After Credit Crisis

The sub-prime crisis of 2007 & 2008 will lead to consolidation within the banking sector through mergers & acquisitions and workforce reduction which will eventually lead to very profitable banks with higher profit margins.

There will be a few changes in the financial sector which will change the way that they do business.  Firstly, products which are very difficult to price in the past will be tough to sell in the future.  Products which package loans and sell them off will be much more tightly regulated.  Hedge fund regulation will be increased dramatically.  Essentially, any product which involved large amounts of leverage and speculation will be regulated more vigorously. 
At the end of the day; however, he believes that the banks will recover, cut their fat, eliminate risky practices, consolidate, and profit handsomely.