WASHINGTON (TheStreet) --The great divide between big banks and small banks has never been more significant.
With Congressional leaders vilifying megabanks as they draft new punishments, er, I mean rules for the banking industry, smaller banks seem more than happy to let the big banks pay.
But smaller banks are fine with the plan so far and the current provisions have the support of the Independent Community Bankers of America, which represents about 8,000 smaller banks across the country such as Capital Bank (CBKN), California Republic Bank (CRPB) and Virginia Heritage Bank (VGBK).The divide is not such a surprise, really. The Democrat-led regulatory reforms in the works cast big banks as villains that need to be drawn and quartered - literally. Banks considered too big to fail could be forced to dismantle some of their operations and they would all have to increase their reserves and contribute to a $150 billion fund to be tapped in the event of a big bank failure. Hedge funds would need to be registered. Complex derivative securities -- such as the bundled and re-bundled mortgage-related investments that ended up having no assets to back them and collapsed like a house of cards - would need to be governed by more regulated exchanges. New oversight panels and more consumer protection are also in the works. And, of course, more taxpayer assistance for consumers, many of whom are being treated as victims of the evil banking industry.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV