Appearing on Fox Business News, Tabb Group CEO and founder Larry Tabb predicts a return to "old-style" banking, where large financial firms shy away from complex financial products. "We're seeing people move out of the stock markets and wanting to keep their assets in deposits which pay low interest so their cost of funds go down. They're rationing credit so when they lend money they are lending it at higher rates and so those spreads widen out," he says. As investors look for more transparent products the demand for complex instruments is going down.

As profts at these old-style banks inevitably go down, they will not be able to pay the same high salaries and people will leave to start up new-style investment banks that will be partnerships and not publicly traded companies, he says. As more and more hedge funds close, Tabb foresees that these individuals will join together with the "renegades" from the old investment banks to form new partnership-based investment banks that will be smaller and more able to indulge in the trading of complex products.