Citigroup, JPMorgan Chase, Bank of America, and Wells Fargo now dominate the U.S. financial sector. So much so that startup banks have stopped popping up. The Bank of Bird-in-Hand in Pennsylvania is the first federally approved startup in almost three years.
But maybe the decline of small banks isn’t such a bad thing. Matt Yglesias of Slate argues that, if anything, the U.S. needs even fewer banks. Small banks are poorly managed, harder to regulate, and fail to compete with the financial giants. Competition holds banks accountable, but a local startup bank vs. Chase isn’t much of a competition at all.
Regardless, it’s a stark picture to see just four companies control U.S. banking. These four have become the definition – and poster children – for "too big to fail." And if trends are any indication, it’s only going to get worse.
When the INSANE are running the ASYLUM In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. -- Friedrich Nietzsche
“How fortunate for those in power that people never think.” Adolph Hitler
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