The events that occurred in the financial services industry over the past year were once thought inconceivable. At this point, regulators are chomping at the bit to reverse how Wall Street does business, and investors are downright spooked. The editors of SourceMedia's business publications offer their views on how these dramatic shifts on Wall Street and in corporate America will impact businesses and investors this year.
Mutual Funds: Fund companies are fearing steep declines in assets at least over the next two quarters. In the first 11 months of 2008, mutual fund assets overall fell by 22%, from $12 trillion to $9.3 trillion, and many firms have lost as much as 30% of their assets under management. Investors are likely to continue fleeing to the safety of fixed-income, money market funds, Treasuries and cash, and some firms will have no choice but to continue laying off staff.