Page 166 - Flip Banks TG

Summary

Summary

“Can the government really claim victory for squeezing

money out of large banks like Bank of America to pay for the

sins of some other lender?” said Cecala, the publisher of

Inside Mortgage Finance. “Wouldn’t it be more appropriate if
they went after Countrywide officials who were responsible

for this kind of thing?” (6)

Although the threat of regulatory sanctions continues to

hang over all financial institutions, it could however, be

argued that regulatory scrutiny so long on BofA has now

moved on to Wells Fargo as a favoured target.

Rules intended to avert future bank failures have instead

helped big banks see off competition from smaller ones.

Like multinationals big banks can spread compliance costs

over a larger base. Furthermore, these large banks which

face and must adhere to a wide variety of capital standards,

have the advantage that they have lots of businesses, and

can thus arrange their affairs more efficiently. Essential,

when trying to achieve the twin aims of improving

operational efficiency and avoiding disaster.