Banks are really shrinking now

Yep. RS this is what I metntioned another thread... I work in traditonal risk managemnt but banks now need a huge regulatory & ops risk group that drives zero revenue. I am shocked how high the financials have gone... We're banging our heads every day looking for YOY growth but it ain't there. Sell financials while the price is plump.

Financials are going up because the risk trade is on. The smart money, and those that understand a little of bank accounting and the current environment are not buying. Fake accounting and a broken business model is not a reason to invest.

I actually have to read the 90 page thing. But I read a similar one from JPM last week, and this is what all the analysts are saying.

Ergo, breaking up the banks is not necessary, they will shrink because of this.

Top four commercial banks still control too many deposits. The Dallas Fed has it right.

http://dallasfed.org/assets/documents/fed/annual/2011/ar11.pdf

Madoff123, what kind of risk are you managing?

Ha! Regular old small business lending. Nothing sexy. ;) Still, it's a living.

To be honest I wouldn't mind having banks broken up into smaller/specialized banks.
Too many banks allow front running orders by proprietary division from asset management.
Other kind of cross divisional schemed arise as well.
It would be harder to cheat clients out of their money if banks would not hold so many divisions.

Lastly smaller banks should be easier to regulate.