The law change will cause profits at my community bank to drop very slightly in the short term… but will push customers away from large banks and into our open arms overtime… on balance small banks win large banks lose.

]]>JPM reported lower quarter-to-quarter revenue. Adjusting for the reduced (and in some businesses, reversed)loan provisions and the increased proprietary trading revenues in the Investment Bank, JPM also reported significantly lower recurring quarter-to-quarter profits. So JPM pushed hard to reach a 13% overall return on equity.

However, the Card Division increased both revenues and profits. And even more striking, JPM reported a whopping 42% return on equity in the Card Division. Revenues and profits in Cards have quadrupled since QII 2010.

And yes, while much of Card Revenues are Interest Income, the Other Income (and debit card contribution) is hopelessly obfuscated by inter-division transfers.

So the lack of debit card transparency just fuels the fire, and as Durbin notes more then once in his letter, there is a lot of money being clawed off the table “hand over fist.”

]]>At least at that age, the boys are more inclined to take risks, to proceed on a partial understanding, to make educated guesses… The girls want to understand the problem thoroughly before they hazard an answer. Given the same level of understanding, the boy might earn a “B” on a test where the girl gets stuck on a problem, freezes a bit, and earns a “C”.

Our approach to mathematics education is essentially a bootstrap process, based on PARTIAL understanding throughout. As you advance through the curriculum, your partial understanding of the earlier topics improves until you eventually understand it well. For example, adding fractions with unlike denominators is introduced in fifth grade (?), but it typically doesn’t mature until the students see the same fundamental concepts in action when they study rational functions in Algebra II (10th grade) and proving trig identities in Precalculus (11th grade).

There are other approaches to mathematics education that might serve girls better.

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