On banking

The bank lawsuits started in foreign cities such as Hong Kong as early as 2008. Hong Kongers got most of their money lost in the Lehman Brothers' derived debts disguised as 'mini bonds'. They could not sue the bankrupted Lehman Brothers but the banks that marketed these 'mini bonds'.

In my books, banking is one of the sectors to be cautious as we never know the quality of the loans. Besides the bankrupted institutions, Citi Group (C) was at $550 a share one time. Some dividend lovers say it is fine as the dividend yield surges when the price plunges. I do not understand the logic. Would some one shed some light on it?

If the bankers were more selective in lending money and were not blinded by bonus, most bad loans should be avoided. I lend my money to the bank for 0% interest and they turn around to lend it out for 3% or so. Easy business!