This week he devotes a lot of his letter to testimony that seems to prove that big banks like Citigroup ( C) and BAC were negligent and even willfully careless in underwriting subprime mortgages.
To make matters worse, banks often issues a 1099-C with incorrect information.
Add in Square, Bank of America (BAC), Citigroup (C) and other banks as well as other entities that are embarking on mobile payment options and the competitive landscape will likely become even more difficult.
This situation is reminiscent of our bailouts of banks like Citigroup ( NYSE:C), Goldman Sachs ( NYSE:GS), AIG ( NYSE:AIG) and many others under duress from our central bank asserting that the United States had to cough up billions of taxpayer dollars or our economy would collapse.
One of those banks, Citigroup (nyse: C - news - people ), happens to hold about one-quarter of the assets outstanding.
And large banks, including Citgroup (nyse: C - news - people ), could also get a boost after being upgraded by Lehman Brothers .
For many banks this could be as bad as Plan C (an Argentine-style simultaneous default and devaluation), because losses on bond holdings might imperil their own solvency and further cut them off from market funding.
Some banks, including Citigroup (nyse: C - news - people ), have been trying to get bigger in the business, but dozens of others have sold out, mostly to those three giants, over the last decade because they couldn't keep up with the technology costs.
Bank of America (BAC) touched a new post-crisis low on Monday, but Citigroup (C) has the dubious distinction of having shed the most value among the big banks in the last five years.
"Japanese banks and others are unwinding their cross-shareholding of keiretsu groups at a savage pace, " says C.
Other banks that have expressed an interest in expanding their equity trading capabilities, including Citigroup (nyse: C - news - people ), are likely to stay on the sidelines when it comes to the specialist firms.
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