Warren Pounces, Bernake Lies, You're Still Screwed

[Mo~]

That's why I like reading your stuff, Dud. You are very well informed and post intelligently with less bias than most and I learn a lot from you.

[Kane]

Well, when you look at Dodd Frank and the rest it looks more and more like this is a slow death for these banks. They're shedding superb equity traders that are opting out and into hedge funds. Just look at all the talent the Green Mountain Capital Group is literally tearing away from these behemoths. The CPFB probably isn't making it any easier on these banks. It's a slow death for sure and could've been handled much better but I think we'll continue to see this develop over time.

It's going to force the banks into an untenable position where they'll have to choose between maintaining a large base by imposing fees on regular transactions or they'll need to shrink.

[exploited]

Is it not better for it to be phased out gradually anyways? Keep in mind I am not an economist, but this gives the markets time to adjust, doesn't it?

[Indy]

[Kane]

[Indy]

I guess I'm saying I have little faith that TBTF banks will eventually downsize themselves of their own accord. That's all.

[Kane]

Well, they won't. That's the point. Bernanke is saying it needs more time to work through, but eventually these banks will need to fund themselves without the Fed Rate sitting at zero and with these large consumer bases that will mean eating more cost or passing it onto the consumer. Remember charging for debit card use? That will come back up at some point. Then the smaller banks can use that as a competitive advantage and the downsizing will begin.

[Indy]

[The Dude]

[The Dude]