There are many cycles in markets. One that will always be with us is the dealer cowbell cycle.

Most business verticals within the world of global megabanks have a couple of leaders, who know how to run that business line well, have a long history and a strong client base.

Prime financing; stock loan; option clearing; dealer desks in each asset class and product category.

At any point in time, in any business vertical, there are usually a few banks that are not the leaders, who are trying to become a contender. They can't yet compete on know-how, on client relationships, on services, on value-add. But they can compete on pricing and terms.

They go out and hire a few hitters from the leaders on three-year guarantees, and start offering more aggressive pricing and terms than the leaders, and they start to accumulate market share among the most aggressive clients.

Those clients are usually quite sophisticated in terms of how they carve up their business among banks, and there can be more than a bit of adverse selection involved.

Sometimes, once in a blue moon, this ends up with one of the aggressive competitors building a big franchise business in that vertical and learning to compete broadly as a leader.

Usually, it ends with them getting over their skis on business where they did not evaluate the risk properly or they ignored the risks in order to win the business. And then the bank lays off a bunch of people it hired a year or two ago on guarantees.

Apply this thought as you like, or not, to current events.