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Mean Reversion Banking

Based on the recent trend of slipping systemically critical labels under the front doors of financial institutions as easily as take out menus, the US is setting the stage for the era of average banking. The regulatory overlords seem hell-bent on establishing a landscape of average size banks making average size profits. However, as little as DC wants to hear it, there is still a convincing argument for bigger is better. Just because the Sandy Weil/Chuck Prince experiment failed in spectacular fashion, with special help from Bob Rubin, that shouldn't condemn firms like JPM to live with Washington's acumen in determining the proper size and shape for a bank.
The Perils of a Smaller Wall Street [WSJ]



Short: Humans. Long: 'Dystopian Eras Of Non-Mean Reversion'

Long: Replacing humans, augmenting humans, opium of the people, bullets and prisons, funeral parlors and psychiatric wards.