Remember that banks aren't markets. The market is amoral. The market doesn't care who you are. You're a trade to the market. The market will sell you if they think you're riskier.
Sentiment: NEGATIVE
The trade of banks is the buying and selling of interest and exchange.
Banks are run by executives, and executives protect themselves, and that does not always mean that banks are going to behave rationally.
You want banks to take some risk, but intelligent risk.
The market, as we're all painfully aware in the aftermath of the banking crisis, can be an idiot. It has no perception of right or wrong, or even sensible or insane. It sees profit.
The fundamental problem with banks is what it's always been: they're in the business of banking, and banking, whether plain vanilla or incredibly sophisticated, is inherently risky.
Banks are an almost irresistible attraction for that element of our society which seeks unearned money.
Commercial banks are very good for certain businesses, like loans and guarding other people's money. They're not great investors or entrepreneurs.
People with banking experience haven't all flocked to the biggest banks; community banks and regional banks, along with smaller trading houses and credit unions, have some very talented people.
I think the market should reward banks that have been transparent in recognising their problems. I think the tendency of banks to hide the problem assets over a period of three or four years should not be allowed.
If I finance a bank and I know if the bank will get in trouble, I will be hit and I will lose money, I will put a price on that.