Thursday, February 09, 2012
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5. This morning's "fantastic" jobs report is hiding some shocking news
 
Regional banks to dominate lending in future
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Wednesday, March 25, 2009
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Meredith Whitney, the analyst famous for calling Citigroup's demise, believes the big bank business model is broken, and regional banks will reign supreme in the future.

From the WSJ:

One issue is the physical distance between loan originators and borrowers. Good lending results from a relationship with borrowers, and regional banks are in a better position to take advantage of those relationships. She added that five banks controlling two-thirds of mortgage origination and credit cards is fundamentally unbalanced.

Whitney suggested "supercharging" regional banks... she proposed using repaid Troubled Asset Relief Program (TARP) money to encourage consolidation in the sector.

Read full article...

Crux note: The best way to gain exposure to the regional banking sector is through the SPDR KBR Regional Banking ETF (KRE).

Topics: Banks | Stocks
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