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View Diary: Confessions of a Modern Day Bankster (6 comments)

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  •  Frank - I have read that (0+ / 0-)

    changes in capital requirements and the pending changes in regulations, and the cost of compliance, are factors in the consolidation of small and regional banks. What's your take on those issues?

    "let's talk about that"

    by VClib on Tue Nov 01, 2011 at 03:58:11 PM PDT

    •  VClib - I work at the branch level and have no (1+ / 0-)
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      exposure with the business planning realm. Having said that, I am aware that all banks are expected to maintain higher Tier 1 Capital levels than before the financial crisis in order to better withstand shocks to the economy and hence a negative impact on bank's loan portfolio performance. I understand that banks will pay more for things like FDIC insurance coverage so the overhead costs of running a bank will increase. This will impact smaller banks more than the giant banks since the big boys often have a more diverse revenue stream. They can make money from "fee" income and not just rely on "earned" income from performing loans. We may see some consolidation of the smaller banks but in my estimation it will be because some of the stronger regional players want to expand their footprint and take over weakened small banks wanting to throw in the towel.

      The Occupy movement is powerful, not because it is fighting for the rights of a few hundred people to sleep outdoors, but because it is fighting for the right of millions of Americans to sleep indoors. - Van Jones

      by Frank In WA on Tue Nov 01, 2011 at 09:47:39 PM PDT

      [ Parent ]

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