According to Bloomberg, Ross is looking to make investments in smaller Spanish banks once they start shedding their bad debts.
In a recessionary economy, raising capital is expensive and not easily done without diluting the existing shareholders, especially in smaller community banks where access to the capital markets is difficult or non-existent.
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Of course lost on the author is the simple truth that a strict policy of no bailouts would achieve that which he desires in terms of smaller banks.
The XLF is down 42% since that apex, but smaller banks in the KBW Regional Banks (KRE) ETF fared better, down 24%.
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There would be a great deal more banks smaller in stature, but thanks to limits set by market forces, none would grow too large.
While all banks will suffer in a Greek-like interest rate environment, smaller banks and thrifts are least prepared for the economic doomsday scenario.
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The banks which act as consolidators may have to rely on smaller banks to fill in some gaps.
The TAF facility, by contrast, allows many smaller banks to participate in setting the interest rate, overcoming a perceived reluctance of the big institutions to lend money.
Reserves fell for the first time since the fourth quarter 2006 (down 4.5%) even though two out of three mostly smaller banks raised reserves in the quarter.
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Mr Burglass did concede many banks struggled with investing in smaller renewable projects.
This would have seen a bank levy on all deposits over 100, 000 euros in banks in Cyprus and a smaller percentage on deposits of more than 20, 000 euros.
But the deal doesn't include any losses for smaller depositors or depositors in other Cypriot banks, a proposal that derailed an initial attempt to reach a pact last week.
Still, even as the major banks play it safe, smaller banks are churning out products in ever greater numbers.
It would only make clean-up during a crisis much more difficult, because rather than facing fewer banks of higher visibility, investors would be confronted with a galaxy of smaller, lower-visibility banks in the process of imploding.
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Smaller banks that typically lend to smaller businesses have so far been lagging larger firms in commercial and industrial loan growth, according to the Office of the Comptroller of the Currency.
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There are banks smaller than us and not in Basel 2 that are complex.
Prices on bonds issued by smaller banks are usually based on existing debt in the market.
Before then, in the boom years, central banks operated with much smaller balance sheets, supplying a modest amount of marginal lending to smooth out the bumps in markets.
Some major players have disappeared, while many U.S. midsize and smaller banks are still grappling with loans that soured in the economic downturn.
Smaller banks that once aspired to be global are expanding in markets closer to home instead.
Some of the smaller banks also -- although they weren't involved in some of the crazy stuff that was going on on Wall Street -- frankly were just way overextended when it came to the commercial real estate market, built a lot of malls out there, a lot of strip malls out there.
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Central banks in Brazil, Hong Kong, India, and a number of smaller emerging markets, became similarly concerned about inflation last fall, and have subsequently been tightening their monetary policies and raising rates.
During part of his response he spoke about shielding smaller, community banks from some of the more stringent requirements designed to rein in risk-taking at systemically important institutions.
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They also say that if large banks back away from some trading of government bonds, smaller firms will step in and fill the gap.
Chase, which has launched the tests in some of its smaller markets such as northern Wisconsin and Atlanta, is one of the first banks to explore monthly fees on debit cards.
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They could, however, offer huge efficiency gains, in particular deals between the large public-sector banks (the so-called Landesbanken) and smaller savings banks.
As part of a series of EU reforms partially aimed at protecting the euro, the European Central Bank will be directly supervising around 200 of the largest European banks from 2014 - but will have the right to intervene if smaller lenders are in trouble.
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Such exposure is reflected in the share prices of banks in the big and stable European countries, which are wagged by the tail of their smaller neighbours.
Because all of the nine major U.S. banks, as well as dozens of regional and smaller banks, are participating, picking a banker could raise criticism that Obama is putting a fox in charge of the hen house.
But although smaller European banks may agree to such deals, those with ambitions to become asset-management powerhouses in their own right will kick and scream before they allow another fund firm to come in contact with their customers.
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