Wallstreet and banking have been a big political issue on the Democratic side with Bernie Sanders winning against Hillary Clinton. Mainly because of issues the United States of America is facing such as “Too Big to Fail.” When you think of something that is too big to fail that would be one of the big banks such as Chase or Bank of America.
It started out as 37 Banks then became 4 banks in Just 2 Decades. From 2009 to 2013, only seven new banks were formed. “This dramatic reduction in new bank charters could be a concern for policymakers, if as some suggest, the decline has been caused by increased regulatory burden imposed in response to the financial crisis,” the authors of the Federal Reserve paper write.
Competition from small banks has dried up as a result. A study by George Mason University found that over the last 15 years, the amount of small banks in the country has decreased by -28%.
Big banks, on the other hand, are doing relatively quite well. There are now 33% more big banks today than there were in 2000. Check out these charts that really tell the story:
Linda Kish says
Didn’t they in the 70s take the big corporations and banks and break them up into smaller ones because they said it was illegal to have the big ones?