Despite the almost constant stream of bad news about the industry, Federal Reserve Board Gov. Elizabeth Duke has found at least one sector to be proud of: community banking.

"I'm very optimistic about community banks," she said in an interview last week. "I think that sort of basic, straightforward, take-deposits-and-make-loans … model will become more important now that all of the financial wizardry has turned out to be not quite so exciting as first promised."

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