Concerns over Concentration in the Banking Industry

Bob Diamond expresses worry about the concentration of larger interconnected banks, stating that fewer and larger banks may not be beneficial for the US economy. He refers to these banks as utilities and highlights the importance of the diversification in the financial services industry. Diamond believes that higher capital requirements will primarily impact these larger banks and their ability to maintain lending levels and return on equity. He sees opportunities and potential consolidation in regional banks, emphasizing their importance in supporting small and medium enterprise businesses.