The smaller banks are the main competition to the big bank cartel. JP Morgan appears to be flagging that they will use the stress created by contraction of the money supply to "take out the competition". Anti trust anyone?
The fed stating they will sell down their balance sheet (contract the money supply) appears to be at odds with an expansionary interest rate settings of less than 1 percent. Does the fed understand their own monetary theory in supervising monetary policy or are they just helping out the "fed backed" banking cartel at the expense of banking industry competition?