Hello. This would be the wake-up call we said was coming.
There is just not enough lending by BAC — or WFC for that matter — to sustain the bank’s far flung operations quarter after quarter, indefinitely. Remember, lending is how banks make the big bucks, fees and a steady diet of (subsidized) government securities are the stuff of public utilities, not high-powered finance.
Hey, come to think of it…the TBTF banks are GSEs at this point. Is it much of stretch to think of them as nothing more than CMUD with better offices?
