Comments on: In praise of smaller banks, less volatility Thu, 21 Jul 2016 07:57:19 +0000 hourly 1 By: LucidOne Fri, 18 Dec 2009 20:51:05 +0000 Banks seem to be one of the few industries impervious to government breakups. While its valuable to have a large deposit base, and nationwide or global coverage, this strategy tends towards consolidation. While we still have several major banks, any issues and they could further consolidate, and entrench what is becoming a monopoly.

Basically, Citi should have been broken up by the government. While they have shed some assets, they continue to wheeze and bleed. Due to many of the shotgun weddings during the crisis, they have basically created a banking cabal. When the government decides to get tough on banking, and not through pseudo socialism or ineffective regulatory overhauls, then we will have a more competitive and healthy banking sector. The breaking of past monopolies always ultimately benefited both the companies and the consumers.