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Thousands of banks may disappear: Wall Street-Obama's 2nd term will be death knell for small banks
CNN Money ^ | November 9, 2012 | Stephen Gandel, senior editor

Posted on 11/10/2012 11:51:44 PM PST by 2ndDivisionVet

Do we need to worry about Too Small to Survive?

Now that President Obama has been re-elected, analysts, consultants and dealmakers have turned from whether Dodd-Frank will be repealed to what it means for banks now that it's likely here to stay. The overwhelming conclusion: Thousands of small banks will soon disappear.

Emmett Daly, a Sandler O'Neill dealmaker who specializes in small banks, predicted at an industry conference put on by Mergermarket on Thursday that the number of banks in the U.S. would shrink to a few hundred. There are currently more than 7,000. Bill Egan, head of financial institutions investment banking at Bank of America Merrill Lynch, agreed, but said the weeding out process was likely to take more than a decade.

Indeed, the deal this week to buy bank adviser KBW by larger rival Stifel Financial appeared to be motivated by the belief that more banks would have to make deals. Says Rochdale Securities bank analyst Dick Bove, "It's fairly clear that 50% of the banks in the U.S. need to be recapitalized."

Kamal Mustafa, who heads up bank consulting firm Invictus and is a former Wall Street M&A banker, says it's not just Dodd-Frank. Low interest rates and the Fed's annual stress tests are making it tough for small banks to survive as well. His firm looked at bank profits and capital rules and came to this conclusion: Nearly 2,000 banks need to sell...

(Excerpt) Read more at finance.fortune.cnn.com ...


TOPICS: Business/Economy; Culture/Society; Extended News; Government
KEYWORDS: banking; banks; economy; jobs; layoffs; obama; smallbanks
Good news for the sign and stationary companies, I guess.
1 posted on 11/10/2012 11:51:52 PM PST by 2ndDivisionVet
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Who gagged CNN Money during the jackass’s campaign?


2 posted on 11/10/2012 11:54:42 PM PST by Gene Eric (Demoralization is a weapon of the enemy. Don't get it, don't spread it!)
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To: 2ndDivisionVet

A lot of information sure came out AFTER the election..


3 posted on 11/10/2012 11:58:15 PM PST by GeronL (http://asspos.blogspot.com)
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To: Gene Eric

They “self-gagged” like every other media outlet. Same as 2008. Anyone seen a petition for Texas to leave the union?


4 posted on 11/10/2012 11:59:01 PM PST by 2ndDivisionVet (You cannot invade the mainland United States. There would be a rifle behind every blade of grass.)
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To: 2ndDivisionVet

Ironic because the left is supposedly in favor of small community banks and against those greedy big 1% banks. It’s always easier for big companies to survive the burdensome govt regulations and taxes.


5 posted on 11/11/2012 12:01:12 AM PST by ari-freedom
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To: GeronL

No kidding....and who the heck is THIS??? “Kamal Mustafa...”

Serious question.


6 posted on 11/11/2012 12:02:01 AM PST by Bradís Gramma (PRAY for this country like your life depends on it......because it DOES!)
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To: 2ndDivisionVet

To tell Texas to go away?


7 posted on 11/11/2012 12:03:38 AM PST by HiTech RedNeck (How long before all this "fairness" kills everybody, even the poor it was supposed to help???)
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To: Brad's Gramma

Sounds like some banker from Pakistan.


8 posted on 11/11/2012 12:04:40 AM PST by HiTech RedNeck (How long before all this "fairness" kills everybody, even the poor it was supposed to help???)
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To: Brad's Gramma
"No kidding....and who the heck is THIS??? “Kamal Mustafa...”"

9 posted on 11/11/2012 12:53:45 AM PST by ari-freedom
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To: 2ndDivisionVet

Dodd Frank was supposed to make small banks competive. I doubt that was the real reason. They were bought a paid for and those little banks are getting in the way.

I’m telling you the government is going to take over everything. Farm land, telecommunications, internet, banks, hospitals, medical insurance....it will all be taken over by the government.

I know some nurses who love obama. I hope I live long enough to see them get their pay cuts or lose their jobs altogether.

One of them hands out condums to young pregnant girls and tries to pursuade them not to get pregnant again. And she thinks she’s helping others who are less fortunate than her. I wonder how long before some crack head grabs her and says “Gib me dem damn rubbas, white girl. Ah-monna’ trade dem for some crack!” I have a feeling this will be one of the first programs to go. Then again, they certianly want that black baby birthin’ to stop. Maybe that’s why they want gay marriages. They can adopt them babies out to the gay couples.


10 posted on 11/11/2012 1:07:05 AM PST by Terry Mross (No liberal who isn't prepared should be askin' me for help. It won't be pretty.)
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To: 2ndDivisionVet

Dodd Frank was supposed to make small banks competive. I doubt that was the real reason. They were bought a paid for and those little banks are getting in the way.

I’m telling you the government is going to take over everything. Farm land, telecommunications, internet, banks, hospitals, medical insurance....it will all be taken over by the government.

I know some nurses who love obama. I hope I live long enough to see them get their pay cuts or lose their jobs altogether.

One of them hands out condums to young pregnant girls and tries to pursuade them not to get pregnant again. And she thinks she’s helping others who are less fortunate than her. I wonder how long before some crack head grabs her and says “Gib me dem damn rubbas, white girl. Ah-monna’ trade dem for some crack!” I have a feeling this will be one of the first programs to go. Then again, they certianly want that black baby birthin’ to stop. Maybe that’s why they want gay marriages. They can adopt them babies out to the gay couples.


11 posted on 11/11/2012 1:08:30 AM PST by Terry Mross (No liberal who isn't prepared should be askin' me for help. It won't be pretty.)
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To: 2ndDivisionVet

Dodd Frank was supposed to make small banks competive. I doubt that was the real reason. They were bought a paid for and those little banks are getting in the way.

I’m telling you the government is going to take over everything. Farm land, telecommunications, internet, banks, hospitals, medical insurance....it will all be taken over by the government.

I know some nurses who love obama. I hope I live long enough to see them get their pay cuts or lose their jobs altogether.

One of them hands out condums to young pregnant girls and tries to pursuade them not to get pregnant again. And she thinks she’s helping others who are less fortunate than her. I wonder how long before some crack head grabs her and says “Gib me dem damn rubbas, white girl. Ah-monna’ trade dem for some crack!” I have a feeling this will be one of the first programs to go. Then again, they certianly want that black baby birthin’ to stop. Maybe that’s why they want gay marriages. They can adopt them babies out to the gay couples.


12 posted on 11/11/2012 1:08:35 AM PST by Terry Mross (No liberal who isn't prepared should be askin' me for help. It won't be pretty.)
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To: ari-freedom

Same thing on wall street. small firms have same impossible regulatory burden as large ones.


13 posted on 11/11/2012 1:52:42 AM PST by wiggen (The teacher card. When the racism card just won't work.)
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To: Terry Mross

I know some nurses who love obama. I hope I live long enough to see them get their pay cuts or lose their jobs altogether.
****************************************
In “my” hospital 60 phlebotomists are being canned ,, all blood will be Nurse drawn now... I can’t wait to hearthem scream when they start having “housekeeping” chores put on them also..


14 posted on 11/11/2012 4:01:27 AM PST by Neidermeyer
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To: 2ndDivisionVet

This move will consolidate all the peoples savings, investments and retirement in a central place so when the time comes it’s much easier for them to CONFISCATE!!!!!! beware we are being set up for poverty, dependence and oh yeah socialism.


15 posted on 11/11/2012 4:08:15 AM PST by ronnie raygun (Being Brietbart)
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To: wiggen
Actually, I've heard it's the other way around -- and not in a good way.

A friend of mine who runs a small brokerage firm tells me that Dodd-Frank actually removes Federal oversight from firms under a certain size. This is not a good thing, he says, because he now subject to regulatory oversight by every state where his customers live instead of by the SEC. In his particular case, he now has to go through 21 different regulatory processes instead of just one.

16 posted on 11/11/2012 4:26:57 AM PST by Alberta's Child ("I am the master of my fate ... I am the captain of my soul.")
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To: ronnie raygun

The next time the Democrats control both Houses of Congress,all private retirement plans will be confiscated. They would have already been but the 2010 election interferred. In 2012 they learned how to steal elections and how to attain the margins they wished.


17 posted on 11/11/2012 4:38:39 AM PST by sport
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To: HiTech RedNeck; Brad's Gramma

......Kamal Mustafa......

How about Egyptian?


18 posted on 11/11/2012 4:42:38 AM PST by bert ((K.E. N.P. N.C. +12 ..... Present failure and impending death yield irrational action))
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To: 2ndDivisionVet
The Feds have been after the smaller banks for years. At a guessm they would be hapy with no more than 2500 banks total nationwide.

Also, people should realize that the Feds are slowly but surely nationalizing the industry.

Been in the banking business for 42 years. Sort of glad that I am on the back end of my banking career.

19 posted on 11/11/2012 5:10:20 AM PST by Jimmy Valentine (DemocRATS - when they speak, they lie; when they are silent, they are stealing the American Dream)
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To: Neidermeyer

I’m an RN trying to “fight the good fight” but I can understand your views regarding the Obama loving RN’s. Usually when I say..”We are spending 40 cents more for every dollar the FED’s recieve...”, then that usually quiets any debate regarding policy.


20 posted on 11/11/2012 5:21:59 AM PST by mdmathis6 ("Barry" Xmas to all and have a rapaciously taxable New Year!)
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To: 2ndDivisionVet

There are a TON of banks in trouble. The FDIC just hasn’t been shutting them down.....yet. They are letting banks stay open that have No Capital Left. Two and three times as many bad loans as Capital.

Pick a bank:

http://banktracker.investigativereportingworkshop.org/banks/


21 posted on 11/11/2012 5:29:07 AM PST by radioone
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To: 2ndDivisionVet

Getting rid of all those small banks will do wonders for the unemployment rate. [/s]


22 posted on 11/11/2012 5:58:57 AM PST by rbg81
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To: rbg81

How about this:

Small milling company serves wheat growers in Idaho, Wyoming, Nevada, Washington. They mill the flour for the wheat growers.

Last year, Feds clsed down the local small bank with no warning. They cancelled all lines of credit.

Milling company could not meet payroll in their mid-season. Now the Feds are prosecuting the mill for not meeting payroll.

City people who are only politicians just don’t get it.
They have not run a business. They don’t understand anything being seasonal.


23 posted on 11/11/2012 7:36:56 AM PST by ridesthemiles
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To: Neidermeyer

Where are you?


24 posted on 11/11/2012 8:44:05 AM PST by Terry Mross (No liberal who isn't prepared should be askin' me for help. It won't be pretty.)
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To: Alberta's Child

A state as well as national authority (FINRA,SEC) can both have requirements that need to be met.


25 posted on 11/12/2012 3:59:37 AM PST by wiggen (The teacher card. When the racism card just won't work.)
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