Big Banks: What Happens When Customers Cease to Believe?

from The Daily Bell

American banking has its own Tea Party … Like the anti-establishment wing of the Republican Party, the American banking business has its own version of a Tea Party: the Independent Community Bankers of America. In just the past week, the trade group has vociferously opposed the nomination of a Wall Street banker to the Treasury and hailed a bill that would increase congressional oversight of the New York Federal Reserve Bank. These are the plaintive cries of a dying breed of banker. – Reuters

Dominant Social Theme: Bigger banks are better.

Free-Market Analysis: This article presents us with a predictable meme regarding financial centralization as a competitive advantage. When it comes to banks, this is an especially ubiquitous theme.

That’s because those behind the century-old banking consolidation are desperate to establish three points to be placed beyond debate.

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