Born to Behave Badly?

What the leaders of American finance lack in risk-management skills, they seem to make up for in their ability to infuriate the American public. Today's example, from The American Banker:

Despite the Federal Reserve Board's latest attempts to stimulate the housing market, home lenders are keeping rates artificially high to control the volume of refinancing ...

Are large financial institutions of all stripes doomed to a decade of scorn, mistrust and populist regulation? If so, could community banks and small investment-advisory firms reap benefits?