Well, “fundamentally,” lending is the ONLY way a bank makes money/profit/income. It’s in their charter and how they ensure and grow shareholder equity – by lending. What they shouldn’t have been experimenting with so much was selling securitized loans and derivatives.
So, the opportunity, is just that. Lending is the life blood of a bank and if the big boys can’t do it, some other bank can – and should – if they are true to their charter as a commercial or investment bank, right?
$2 Trillion can be lent on highly speculative lending, like sub-prime or it can be lent more strategically or more classically, like in the old days, when you had to consider merit of the borrower and strength of the collateral.
