"King, of course, is a regulator, and I have never met a regulator that found there was too much capital. … Their objective function is to make sure the world doesn't blow up on their watch, and they really don't get any points for having an active banking sector that is innovating and satisfying the need for capital in society."

Linda Allen, a Baruch College professor, on how regulators such as Bank of England Gov. Mervyn King, and banking executives such as Citigroup's Vikram Pandit, differ on their assessments of Basel III.

"If you are a director of a troubled community bank and you have had your head in the sand, this is your siren. … It is time to cut a deal that gives you massive dilution or leaves you with nothing, rather than let your bank be taken over and have the FDIC hound you."

Michael Iannaccone, president of MDI Investments, saying the FDIC's litigation of Heritage Community Bank's directors could lead directly to further distress sales, particularly at banks whose directors and officers lack professional-liability insurance.

"Both borrowers and the investors are the customers of the servicers. … In what other industry do companies treat the customers in this manner?"

Talcott Franklin, a Dallas attorney representing mortgage-backed securities investors, noting that force-placed insurance is one of many areas in which investor and homeowner interests are aligned.

"The dividend will not be the primary attraction, not at this stage, because the yields will still be relatively low."

Fred Cummings, president of Elizabeth Park Capital Management, observing that big banks' dividend increases on their own won't be strong enough to lure investors.


"In many cases, the bank has no choice but to do what it is doing."

James Gardner, chairman of Commerce Street Capital, defending banks that might be criticized for taking action too quickly by selling.

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