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Washington may be getting the message. A few months ago Dan Tarullo, the Fed governor who specializes in bank regulation, proposed capping the size of the banks’ balance sheets.

Some former titans of Wall Street are saying much the same thing. Even Sandy Weill, who created Citigroup (which required $445 billion in TARP loans and asset guarantees) is proposing the biggest banks be broken up.

The new Congress may also be supportive. The new chairman of the House Financial Services Committee, Texas Republican Jeb Hensarling, has been a strong ally of small banks in their push to rein in their bigger rivals, and has expressed concern about the largest being too big to fail.

It’s not irrelevant that the Dallas branch of the Federal Reserve Board, in Hensarling’s home district, has also proposed breaking up the biggest.

GannonFan wrote:Not so much a conservative thing. Dodd/Frank went further than anything so far to set up the banks to be as large as they are. Enshrining too big to fail into law was a centerpiece of the Democrats response to the recession. I'm not too sure I'd want to set a limit as to how big you can be, but I'd certainly take away the parachutes that exist for those big banks that take the risks away.

kalm wrote:

GannonFan wrote:Not so much a conservative thing. Dodd/Frank went further than anything so far to set up the banks to be as large as they are. Enshrining too big to fail into law was a centerpiece of the Democrats response to the recession. I'm not too sure I'd want to set a limit as to how big you can be, but I'd certainly take away the parachutes that exist for those big banks that take the risks away.

You missed the point. Less competition is bad from the conservative perspective. And I agree. But so is regulation. Both sides pander to big banks. It's a conundrum for sure.

Ivytalk wrote:

kalm wrote:
You missed the point. Less competition is bad from the conservative perspective. And I agree. But so is regulation. Both sides pander to big banks. It's a conundrum for sure.

What is the difference, in basis points, between what a big bank pays to borrow funds and what a small community bank pays to borrow? AZGF may have the answer at his fingertips.

Will be interesting to let Citibank (or another one) go under and see how well the Dodd-Frank "bankruptcy" fix works. From what I've read about D-F, it's a Rube Goldberg contraption full of special interest goodies.

AZGrizFan wrote:

Ivytalk wrote: What is the difference, in basis points, between what a big bank pays to borrow funds and what a small community bank pays to borrow? AZGF may have the answer at his fingertips.

Will be interesting to let Citibank (or another one) go under and see how well the Dodd-Frank "bankruptcy" fix works. From what I've read about D-F, it's a Rube Goldberg contraption full of special interest goodies.

While borrowing is sometimes "tiered", there's very little difference in COF when borrowing from the Fed as a general rule. The REAL competitive difference is CONVENIENCE. Every year there's a national survey done and every year credit unions blow away banks in nine of the ten categories...trustworthiness, friendliness, helpfulness, product offerings, knowledge, etc., etc. Banks win in only ONE category: convenience. And banks hold 94% of all $$ on deposit in financial institutions.

Several years ago the credit union industry launched the Shared Branching Network to combat this competitive advantage...it's slowly catching on, but it will take years to put a dent in that 94% number. Some people just can't be taught.

D1B wrote:

AZGrizFan wrote:
While borrowing is sometimes "tiered", there's very little difference in COF when borrowing from the Fed as a general rule. The REAL competitive difference is CONVENIENCE. Every year there's a national survey done and every year credit unions blow away banks in nine of the ten categories...trustworthiness, friendliness, helpfulness, product offerings, knowledge, etc., etc. Banks win in only ONE category: convenience. And banks hold 94% of all $$ on deposit in financial institutions.

Several years ago the credit union industry launched the Shared Branching Network to combat this competitive advantage...it's slowly catching on, but it will take years to put a dent in that 94% number. Some people just can't be taught.

So credit unions have better wealth management services, especially those geared towards big fish?

Every gazillionaire I know is with a bank. 90% of the very wealthy are with a bank. Most of the wealthy are with banks.

AZGrizFan wrote:

D1B wrote:
So credit unions have better wealth management services, especially those geared towards big fish?

Every gazillionaire I know is with a bank. 90% of the very wealthy are with a bank. Most of the wealthy are with banks.

a) CU's don't "target' the wealthy...we are "people serving people"...very socialist mindset
b) Rich wouldn't be caught dead with their money in a credit union. Why? because we treat each member the same, regardless of how much $$ they have in the institution.
c) In a bank, the more $$ you have in it, the more power you wield. Potentially to the point of being on the BOD. In a credit union, it's one member, one vote. Period.

D1B wrote:

AZGrizFan wrote:
a) CU's don't "target' the wealthy...we are "people serving people"...very socialist mindset
b) Rich wouldn't be caught dead with their money in a credit union. Why? because we treat each member the same, regardless of how much $$ they have in the institution.
c) In a bank, the more $$ you have in it, the more power you wield. Potentially to the point of being on the BOD. In a credit union, it's one member, one vote. Period.

Fuck off.

Ibanez wrote:

D1B wrote:

Fuck off.

Checkmate.

Ibanez wrote:

D1B wrote:

**** off.

Checkmate.

AZGrizFan wrote:

Ibanez wrote: Checkmate.

D1B wrote:

AZGrizFan wrote:

Yeah, don't rest just yet, you smug fuck. My comic relief aside, I highlighted a major flaw in your industry that you overlooked. Looks like 9 out of 11 is still good, but not providing decent wealth management services is a biggie.

PM me if you need more help understanding your business.

Ibanez wrote:

D1B wrote:
Yeah, don't rest just yet, you smug fuck. My comic relief aside, I highlighted a major flaw in your industry that you overlooked. Looks like 9 out of 11 is still good, but not providing decent wealth management services is a biggie.

PM me if you need more help understanding your business.

D1B wrote:

Ibanez wrote:

Now that your nose has been dislodged from Z's asshole, maybe you'll pay attention.

Ibanez wrote:

D1B wrote:
Now that your nose has been dislodged from Z's asshole, maybe you'll pay attention.

I'm eager to listen to your advice on how to improve the Credit Union business.
Perhaps you should publish your advice...sorry..your experience in improving other CU's in terms of wealth management. I'm sure you have many pleased clients.

D1B wrote:

Ibanez wrote: I'm eager to listen to your advice on how to improve the Credit Union business.
Perhaps you should publish your advice...sorry..your experience in improving other CU's in terms of wealth management. I'm sure you have many pleased clients.

Jesus, you're an asshat.

D1B wrote:

AZGrizFan wrote:

Yeah, don't rest just yet, you smug fuck. My comic relief aside, I highlighted a major flaw in your industry that you overlooked. Looks like 9 out of 11 is still good, but not providing decent wealth management services is a biggie.

PM me if you need more help understanding your business.

AZGrizFan wrote:

D1B wrote:
Yeah, don't rest just yet, you smug fuck. My comic relief aside, I highlighted a major flaw in your industry that you overlooked. Looks like 9 out of 11 is still good, but not providing decent wealth management services is a biggie.

PM me if you need more help understanding your business.

Yes, I'm shocked....SHOCKED, I say....who knew we didn't provide adequate wealth management?

Thanks for the heads up, D.

D1B wrote:

AZGrizFan wrote:
Yes, I'm shocked....SHOCKED, I say....who knew we didn't provide adequate wealth management?

Thanks for the heads up, D.

You also don't have adequate Mortgage/Home/Businesss services either. I had to go with a bank on my morgage and handle my retirement. Wish I could've gone with a CU, but you guys are just too complacent.

AZGrizFan wrote:

D1B wrote:
Yeah, don't rest just yet, you smug fuck. My comic relief aside, I highlighted a major flaw in your industry that you overlooked. Looks like 9 out of 11 is still good, but not providing decent wealth management services is a biggie.

PM me if you need more help understanding your business.

Yes, I'm shocked....SHOCKED, I say....who knew we didn't provide adequate wealth management?

Thanks for the heads up, D.

Ibanez wrote:

D1B wrote:
Jesus, you're an asshat.

Cool story, bro.