Consumer Sentiment & Economic Outlook - Consumers are struggling with higher interest rates, especially concerning housing affordability [2][3] - Businesses are generally performing well, with optimism growing due to new tariffs [3] Deposit Insurance Reform - Regional banks and larger banks have a discrepancy in deposit share, with larger banks being more aggressive [4][5] - The current deposit insurance system is considered broken, favoring larger banks with an implicit guarantee over deposits [6][7] - The market share of the largest four banks has doubled since 2008-2010, unintended by Dodd-Frank [7] - After SVB's failure in 2023, 87% of deposits left regional banks for larger banks [8] - Regional banks are crucial for providing loans to Main Street, exemplified by their greater involvement in PPP loans (larger banks provided only 16%) [9] Competition & Future Trends - Stable coins pose a potential competitive threat to both regional and larger banks [10][11] - Some larger banks operate more like hedge funds, with lower loan-to-deposit ratios (e.g., JP Morgan at 55%) compared to regional banks (e.g., WAFED at 98%) [12][13] - AI is expected to significantly impact headcount, potentially reducing it by around 50% in the next decade [16][17]