Biden Wants To Crack Down On Bank Mergers. Here’s Why That Could Help Consumers And The Economy | Talking Points Memo

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This is a companion discussion topic for the original entry at https://talkingpointsmemo.com/?p=1383007

My first thought was, he’s a little late, but I guess there’s more in the offing. I recall a lot of middle mgrs lost jobs in those 80s mergers.
We need more, not fewer small banks. Be nice if Post ofc did banking.

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My general impression was that Saint Ronnie just loved him some corporate mergers, and not just banks but long-established industrials (e.g., GE absorbs RCA). That stuff gave the lie to the R’s ostensible love affair with free-market capitalism.

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The horse has left a long time ago.

Stopping new mergers will not cure the problem. We must break up the mega banks and restrict them to providing traditional banking services.

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I still remember my first bank account I got so I could deposit my paychecks from my first job in retail during high school. It got purchased 4 times before I switched to another bank. :roll_eyes:

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My local bank in Connecticut is going through its second merger in less than three years, effective before the end of this year.

Pretty soon, there won’t be a banking industry - they’re also laying off hundreds of corporate office workers from my existing bank. All the work is absorbed by the merging bank, so redundancy galore.

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I agree. There are institutional ways in which this could be done, with spectacular results. There are two things going on.

(1) We perform a useful service which benefits customers
(2) We make a profit

The balance is x

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Little late for that. Do that and break the current ones up.

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I much prefer my credit union.

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Yep, in the 80s, by bank got bought by a bank that got bought by another bank.

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Somehow, whenever banks merge and cut costs by firing people, they don’t return that to their borrowers in the form of reduced fees, or their depositors in the form of higher interest.

Also on this topic, I’ve been taken aback by the brazenness of Visa’s advertising during the olympics – they’re touting their universality as if they were some kind of public service organization rather than the profit-maximizing charge-both-sides vampire squid that the are.

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I don’t expect Mr MBNA will go after credit card companies. And I’m betting his EO will be essentially toothless and done mostly for publicity’s sake.

OT
Climate change or weather?
Sunday or Monday coffee futures spiked because of a cold snap in Brazil. It’s really hanging on for an extended time also. A truck driver down there said he’s 62 years old and had never seen snow before.

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One of my favorite memories is my dad giving me $5 and taking me to the credit union to open an account as soon as I learned to sign my name. I did the same with my kid.

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No market is truly free until only one giant mega-corporation controls everything…

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I quit using banks 35 years ago and joined a credit union. I don’t miss all the fees and screwing around to stack overdraft charges.

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Biden is wasting his presidency.

Without Voting rights changes, everything reverts back in 2024.

Sure as shit, repubs change the filibuster, first opportunity and pass more anti democratic laws that we can imagine. They will look first at their long term survival and how to install a permanent republican rule despite being an ever shrinking subset of the country.

Meanwhile, in other economic news…

Anger and frustration mounted in Congress as a nationwide eviction moratorium expired at midnight Saturday — one Democratic lawmaker even camping outside the Capitol in protest as millions of Americans faced being forced from their homes.

Lawmakers said they were blindsided by President Joe Biden’s inaction as the deadline neared, some furious that he called on Congress to provide a last-minute solution to protect renters. The rare division between the president and his party carried potential lasting political ramifications.

Rep. Maxine Waters, D-Calif., the chair of the Financial Services Committee, said Saturday on CNN: “We thought that the White House was in charge.”

Like they did with the phone companies, creating all the Baby Bells? Did that actually work? I am not an Economist but it seems that the Cell phone providers market, at least, is just as concentrated now as Banking in the US.

Speaking of Visa, after he finished school, my son began working in the development side of Not for Profits, and becoming very expert on philanthropic giving in the USA. Way back in 2015 or thereabouts he sent me an article from Jacobin magazine. The article was about how the Bill and Melinda Gates Foundation saw fit to make a huge donation to a project to assist Master Card in figuring out how to make money extending credit to Third World populations not particularly connected to the Internet or the Developed World’s credit card sector. I was pretty angry when I got done reading the article. The author’s conclusion was that “Big Philanthropy” was not to be regarded as a friend.

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The Standard oil breakup just made J.R. richer.

Rockefeller ran the company as its chairman, until his retirement in 1897. He remained the major shareholder, and in 1911, with the dissolution of the Standard Oil trust into 34 smaller companies, Rockefeller became the richest person in modern history, as the initial income of these individual enterprises proved to be much bigger than that of a single larger company. Its successors such as ExxonMobil, Marathon Petroleum, Amoco, and Chevron are still among the companies with the largest revenues in the world.

Gates must have a fondness for Master Card.
He worked with them early on regarding the rona virus.

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