Big Banks vs Small Banks

Peter Atwater notes the bifurcated nature of the US banking system. Large firms deemed too big to fail have benefitted from govt largesse in the form of bailouts, favorable accounting regs, and uber low interest rates.

Small banks have not been privy to the same special treatment and remain in rough shape following the credit collapse.

Sadly, many of these small firms made prudent decisions ahead of the crisis and were poised to reap a huge windfall when the big firms failed.

It seems that big banks who took too much risk were rewarded, while little banks that were prudent were penalized.