Philip Stephens: In Absence Of Competition, Banks 'Have Been Operating Natural Oligopolies'

ft.com:

During the good times no one worried too much about these oligopolies. Markets were booming and the investment banks persuaded policymakers that they made a big net contribution to economic dynamism. That myth has now been exploded.

Read the whole story: ft.com

Comments

[US1st2009]

01:35 PM on 01/21/2010

with today's supreme court ruling that corporations are people and therefore can have unlimited financial impact on elections, we're $crewed.

what we need are CLAWBACKS and PRISON TERMS for FINANCIAL TERRORI$T$!

they "madoff" with our economy and country.

instead we have a corporate and wealthy elite owned supreme court giving them the keys to the country.

[sposton]

09:53 AM on 01/20/2010

In the same issue of FT there is a piece by Peter Boone and Simon Johnson titled "A bank levy will not stop the doomsday cycle". It is worth reading it:

http://www.ft.com/cms/s/0/e118fcc2-0461-11df-8603-00144feabdc0.html

[textynn]

01:09 AM on 01/20/2010

Wall Street says "Touch your Toes"
Wall Street says "Pay a service charge"
Wall Street says, "Pay 29% Interest"
Wall Street says, "Pay a late fee."
Wall Street says, "Jump up and down"
Wall Street says, "Move into the street"
Wall Street says, "Kiss our Bu++s"
Wall Street says, "Bail us Out"
Wall Street says, "Don't look into our business."
Wall Street says, "Fold your business"
Wall Street says, "Your retirement is gone"
Wall Street says, "Too Bad...sooo sad"

Had enough America? MOVE YOUR MONEY

[AZreb]

07:09 AM on 01/20/2010

It is up to the public to insure that the banks pay attention. There is no law that says you have to have your money in one of the "too big to fail" banks and financial institutions. We have been brainwashed into thinking our money is not safe anywhere else, when that is a lie.

Take your money and put it in a credit union or local, smaller bank. Most of mine is still in Utah in a credit union, with just enough in my bank in Arizona to pay bills and have a small cushion for emergencies. Works great.

WE CAN HAVE THE POWER but have allowed the big banks and others to take it from us. Hit them in the pocket book to get their attention.

[kells1001]

12:20 AM on 01/20/2010

The idea to tax these Big Banks is much better than pretending to tax modified homeowners who lost their deductions on whatever late payments were rolled into the new loans. It is also better than trying to tax write-offs by these big banks as income from the simple reality that you can't "squeeze blood out of a turnip". But more than likely the government will increase spending to go after those turnips, while getting or getting a free lunch via the Mega Banks.

[ssfahrer]

11:49 PM on 01/19/2010

There is less competition because the FDIC is closing banks faster than you can say "Jack Robinson"!

[Baltotoast]

10:13 PM on 01/19/2010

Usually the FT does a good job of backing up their story with at least a smattering of fact. This article is just beyond the pale. What is the market share of the largest issuer of equity - around 15%? In a good year? Probably lower for debt. M&A - probably roughly the same? To call this an oligopoly suggests that two or three banks control 25% to 405 of the market each. Just plain factually wrong. The author should be embarrassed.

[holyghostie]

09:02 PM on 01/19/2010

The people at the top of these large Global Banks and Investment Houses are no worse than Osama Bin Laden, in the collateral damage that they inflict on the innocent.

[AME- reje]

07:57 PM on 01/19/2010

let's stop the too big to fail bailout cycle
reading: http://iamned14.blogspot.com

[PhilipTaylor]

07:27 PM on 01/19/2010

Dictatorship by the Financial Aristocracy!

6 to 8 weeks of constant Demonstrations on Wall Street and FED and in Washington should do it!

WALL STREET + FED + WASHINGTON ARE COMPLETELY OUT OF CONTROL!

[Realist]

08:57 PM on 01/19/2010

And here's just one example of bailout crime:

http://bit.ly/insider-trading

[eladora]

07:09 PM on 01/19/2010

Chase business account holders are the next victims of their "changing policy" whenever they want.
Chase ceo Dimon was the original owner of a sub prime company and look at him now. Who says making peoples lives sorrowful doesnt pay --it has him. I encourage anyone needing to complain
to send their correspondence addressed to Dimon to the White House.Thats where he is often. And if you counter sue them --have him served there with papers.

[DiogenesOfAlaska]

06:54 PM on 01/19/2010

I never thought it likely that I would agree with a Tory candidate. But I'm not an ideologue. I just love the fact.

btw I love the Financial Times, too.

[MadeandBakedintheUSA]

06:34 PM on 01/19/2010

Banks profit from USD $$$-

Currency is only a faith in One's GOVERNMENT!

Banks MUST pay for that protection and privilege!

[MadeandBakedintheUSA]

06:31 PM on 01/19/2010

Hey-all the TAX PAYING CITIZENS or NON-CITIZENS that pay USD TAXES-

How did this happen? How is this secure for our BANKRUPT HOMELAND?

USD TAXPAYERS pay for IRAQ Invasion

USD Tax payers pay for SHELL OIL to make Billions with their new OIL CONTRACT

USD Tax payers help out BIG OIL - in IRAQ!

Did SHELL THANK THE AMERICAN TAXPAYER?

Can we at least get a THANK YOU?

[cigi]

11:29 PM on 01/19/2010

US Citizens also are paying probably for the next 50 years for a war in Afghanistan to protect an oil pipe line that has yet to be built there. We are afraid to accept that we need to embrace new technologies that lead us AWAY from the MiddleEast and their oil. Jimmy Carter had us going in the right direction toward that goal in 1979 and then Reagan stepped in to step up our dependence. Could it be that we got those hostages back from Iran right before the election of Reagan/Bush, just so that certain groups of people could insure that we would always keep buying into Arab oil? Me thinks so!. Our association and history with the Saudis and all of the MiddleEast is pretty disgusting and self-serving. We deserve to melt down with the planet in 2012.

[ntmessage]

06:26 PM on 01/19/2010

zzzz. We still neglect to look at and hold accountable the secondary markets and the primary players that casued this mess. Few were banks.

[FreedomCorpse]

05:52 PM on 01/19/2010

Oligopolies running wild, govt turns blind eye.

[FreedomCorpse]

05:57 PM on 01/19/2010

correction, govt encourages it.

[Realist]

08:58 PM on 01/19/2010

correction - government employees are profiting from it:

http://bit.ly/insider-trading