Trade the brokerages, writes Doug Kass, but don't invest in them. Forget the moral (and legal)...

|By:, SA News Editor

Trade the brokerages, writes Doug Kass, but don't invest in them. Forget the moral (and legal) abuses, the business model is broken, with the companies' key profit centers under assault on both a cyclical and structural basis. Toss in the flipside of higher capital requirements - lower returns on capital - and it's hard to make an investment case. (see also)