I think the bigger picture of banking reform has a lot to do with the growth of the MCA/Loan industry. It's ironic for me in some ways. I'm an ex-mortgage banker. I ran a good shop for 8 years before being pushed out because of increased costs, smaller margins, and endless regulation. Dodd-Frank destroyed the small mortgage broker/banker industry. It happened so swiftly that nobody could have seen it coming. It was an unintended consequence for the most part but nothing can change the outcome now. The consolidation in the industry is still continuing and the big winners of course are the big banks. The same folks that the regulation was supposed to "corral" ended up handing them the industry on a platter.

The same bill that destroyed mortgage lending for "the little guy" is helping our industry immensely. Capitalization requirements among a slew of other regulations will continue to make banks risk averse well into the future. For now, we have little to fear in regards to the big boys seeing opportunity and grabbing our market. The ONLY businesses that banks want to lend to are ones that do at 25M or more in annual revenue. Even 25M is the bottom of the food chain to most banks. I think the average loan/mca is somewhere around 30-40k or so. Probably not much more. There is zero institutional appetite for this stuff. And considering the MCA space began thriving when credit was fast and loose, it's a good indication for the viability of growth in this industry going forward.

Banks are currently capitalizing some of this industry and will mostly likely continue to increase investment but it's a clean hands approach. They clearly want someone else to handle the front lines and I can't see that changing anytime soon. If it didn't happen in 05-06 then there's no way it's going to happen in today's environment.

Another unintended consequence of Dodd-Frank is increased pressure on the margins of small to med sized banks. IMO- what we may see is more involvement from smaller banks trying to add to revenue streams by offering the same types of arrangements that webbank, bank of internet, metabank, mission valley, etc are currently doing. If this were to happen it could only help the industry grow. Yes, there will be more players out there but the untapped pool of under served businesses is huge. There's quite a bit of growth potential. Bank's willing to "license compliance" in exchange for servicing/management fees is likely going to be on the rise for the next couple of years.