Thursday, February 4, 2016

Visit Bernie's Bank and Trust

The Democrats are talking.
Glad there are other people watching. Not me.
But Bernie Sanders' riff on banking leaves the question.
If you break up the big banks, what happens?
Will you need a Bernie's Bank and Trust in every city?
Banks grew bigger thanks to government intervention as well as the market.
When one bank saw a bigger bank was doing better, it wanted to be bigger too.
And looked for partners to join up.
Being bigger spreads out the costs of government mandates, and makes them easier to handle. A five-bank company can't afford the regulation Sanders would bring down on them.
I'm not a big bank person - love my local credit union. But I don't travel enough where it's helpful to have a branch of my local bank a 1,000 miles away.
You can blame the banks for being greedy. But break them up and there will be untold new ways Bernie's Bank and Trust (and their new friends) will make life tough for the public.

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