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Will Obama Replace Geithner with Dimon?

Day dreaming has a better chance than Obama's policies to balance the trade deficit .

What matters most is the man at the top. Why is it everyone running like chicken with the head cut? Am I the only one seeing the naked emperor?

Micro-Banking Has a Go in the U.S.

greedcanbgood - Thanks for your comment.

Granted lending involves uncertainity. By pricing risk appropriately (interest rate) the exposure is covered. Unfortunately large banks are at a disadvantage due to regulation. They have a cap on the price and forced to lend. In P-2-P lenders are not forced (atleast not yet) so mis-pricing is avoided.

Moreover I think (if not now over time) harvesting the combined knowledge of lenders who are pooling money will be significant in risk evaluation.

Micro-Banking Has a Go in the U.S.

P-2-P lending is here to stay. Just like how internet and blogs are replacing the traditional news outlets, P-2-P lending by means of large number of lenders will make much better risk assessment and price loans accordingly. More importantly they can avoid government forcing them to make loans that are sure duds.

Banks in Limbo = Financials in Trouble

If any of the major banks is nationalized then it will impact all the banks in terms of their ability to compete with a government agency. So nationalization of any bank will impact the overall banking industry.

Bank of America Facing Mortgage Servicing Losses

Going by CITI example bigger is not better. Global diversification did not insulate CITI from mortgage industry failure. The key business issue in banking is risk management. When banks get bigger they tend to loose control. Economy of scale and cross division synergy does not really happen in banking. Consumers go a la carte for their financial and credit needs. I think BAC stock valuation will be discounted for the large unfathomable risk due to the amalgamation of Merrill and Countrywide.