Small Banks Disappearing

[dust1n]

Ease of large operations due to technology.
Gramm-Leach-Bliley Act and the general slow allowance of legal barriers for the merger of companies.
Natural monopolization.
Uneven influence by large banks in setting regulatory practice and legal precedent.
Ten years of economic stagnation as the majority of the world becomes unemployable.
Other stuffs.

 

[Monk Of Reason]

Are you thinking of a single bank to serve us all, or having many banks, but with one which operates across the nation?

Either or. Now I'm curious as to your answer for both questions.
Though the latter already exists does it not?

Actually, your option #3 is an answer to #1.
Yeah, I know that economy of scale would also lead to consolidation. The real question is whether regulation is also causing it, & leading to undesirable consequences. As Mystic & I find, smaller is better. I currently use both one national & one local bank. The national one (Chase) is better for electronic banking. The local one (United Bank & Trust) is far far better for borrowing, which is my most critical need.

I find the same results here. I use Wells Fargo mainly because I don't have to worry about travel. Though the local one is significantly better.

 

[Revoltingest]

Either or. Now I'm curious as to your answer for both questions.
Though the latter already exists does it not?

National banks are useful, so long as there are enuf to provide vigorous competition.
Of course, a single national bank (especially gov operated) would be a disaster.

 

[Avi1001]

Are you thinking of a single bank to serve us all, or having many banks, but with one which operates across the nation?

Traditional banks bring almost no value added. My experiences with them have nearly always been very bad. This is true for both large and small banks. I think we need fewer bankers and more scientists / engineers.

Full service brokerage houses can handle banking and at least bring some value added.

 

[MysticSang'ha]

Traditional banks bring almost no value added. My experiences with them have nearly always been very bad. This is true for both large and small banks. I think we need fewer bankers and more scientists / engineers.....

And artists, craft workers, and handymen (and women).

Overall, fewer crony-capitalists and fewer bankers will deflate the economy, but I think it might be a better alternative than having the dollar bubble burst. We won't be the empire we are enjoying now, and the citizens will have to rely on localizing trade, banking, and politics...and....

Oh darn. That sounds pretty good.

 

[esmith]

Traditional banks bring almost no value added. My experiences with them have nearly always been very bad. This is true for both large and small banks. I think we need fewer bankers and more scientists / engineers.

Full service brokerage houses can handle banking and at least bring some value added.

And artists, craft workers, and handymen (and women).

Overall, fewer crony-capitalists and fewer bankers will deflate the economy, but I think it might be a better alternative than having the dollar bubble burst. We won't be the empire we are enjoying now, and the citizens will have to rely on localizing trade, banking, and politics...and....

Oh darn. That sounds pretty good.

So, you would have us going back 300+ years? I assume you do not want anyone starting new businesses, planting crops, building homes, scientific research, and many more endeavors that require capital investment provided by lenders?

 

[Avi1001]

And artists, craft workers, and handymen (and women).

Overall, fewer crony-capitalists and fewer bankers will deflate the economy, but I think it might be a better alternative than having the dollar bubble burst. We won't be the empire we are enjoying now, and the citizens will have to rely on localizing trade, banking, and politics...and....

Oh darn. That sounds pretty good.

Arts and crafts people bring value added.

Bankers and lawyers just re-distribute. We need some, but we should minimize them. Market forces help to do this, but banks have grown too large and are too bureaucratic. They are like Department of Motor Vehicles. No one the cares about their vision and mission. We should off-shore Motor Vehicles too. We could just have Motor Vehicle machines in supermarkets.

 

[NobodyYouKnow]

Just passing by this thread...

Small everythings are disappearing and the larger ones will soon follow.

Small banks are being incorporated/bought out by larger ones, small businesses are being destroyed by eBay - larger businesses are being destroyed by eBay too...

I go into any bank, government building or office now, seeking to do any transaction whatsoever, and the person behind the counter always says to me:

"why come in here and bother us, when you can do all of that online?"

I mean, why are they even there then? Why have any banks, social services and shops at all when everything can be done online nowdays and all banks, businesses and corporations are pushing this, putting everybody out of work?

I mean, there won't even be any jobs left soon - except for those in the computer, hospitality and medical industry...

 

[Avi1001]

Just passing by this thread...

Small everythings are disappearing and the larger ones will soon follow.

Small banks are being incorporated/bought out by larger ones, small businesses are being destroyed by eBay - larger businesses are being destroyed by eBay too...

I go into any bank, government building or office now, seeking to do any transaction whatsoever, and the person behind the counter always says to me:

"why come in here and bother us, when you can do all of that online?"

I mean, why are they even there then? Why have any banks, social services and shops at all when everything can be done online nowdays and all banks, businesses and corporations are pushing this, putting everybody out of work?

Precisely. This is a great economics question.

I believe the recent recession is because our robots are not yet cheaper than people in other countries.

Another issue is why isn't our economy doing better when we are setting up manufacturing by US companies in other countries to utilize the low labor costs ? I think it is because most of the profits are going to a small number of highly paid executives.

I mean, there won't even be any jobs left soon - except for those in the computer, hospitality and medical industry...

Make sure your children are properly educated. A PhD in basket weaving will not fly.

 

[Monk Of Reason]

National banks are useful, so long as there are enuf to provide vigorous competition.
Of course, a single national bank (especially gov operated) would be a disaster.

I am not disagreeing with you but why do you think this specifically?

 

[MysticSang'ha]

So, you would have us going back 300+ years? I assume you do not want anyone starting new businesses, planting crops, building homes, scientific research, and many more endeavors that require capital investment provided by lenders?

I own a business. Why would you ask me such a question?

 

[Revoltingest]

I am not disagreeing with you but why do you think this specifically?

Were there a single national bank without competition, service would fall & costs would rise.
And since it would have a monopoly, it would be highly regulated, effectively becoming
government run. So I imagine it would be a travesty such as the Royal Bank Of Scotland
on steroids.

 

[Monk Of Reason]

Were there a single national bank without competition, service would fall & costs would rise.
And since it would have a monopoly, it would be highly regulated, effectively becoming
government run. So I imagine it would be a travesty such as the Royal Bank Of Scotland
on steroids.

There are several reasons why the Royal Bank of Scotland failed. What do you say in the face of the Icelandic policy during the 2008 world recession?

 

[Revoltingest]

There are several reasons why the Royal Bank of Scotland failed. What do you say in the face of the Icelandic policy during the 2008 world recession?

Actually, my problem with RBS isn't that they failed, & were rescued by their new owner (The
British Gov), but rather by their behavior, ie, how they run their assets in the US, Citizens Bank
& Charter One. Heaven forbid we be stuck with such bozos as our sole national bank.

 

[Monk Of Reason]

Actually, my problem with RBS isn't that they failed, & were rescued by their new owner (The
British Gov), but rather by their behavior, ie, how they run their assets in the US, Citizens Bank
& Charter One. Heaven forbid we be stuck with such bozos as our sole national bank.

Were you king for a day do you think you could construct a team of people to advise you on how to correctly run a Nationalized bank? Is your objection upon "if the government runs it, then it must be bad?" or "A singular bank cannot work because of factors independent of the government's involvement? "

 

[Avi1001]

Were you king for a day do you think you could construct a team of people to advise you on how to correctly run a Nationalized bank? Is your objection upon "if the government runs it, then it must be bad?" or "A singular bank cannot work because of factors independent of the government's involvement? "

Because banks have been so uncreative in their product offerings, both large and small banks will whither and decrease in number. This is fine, and ultimately might result in some new ideas being formulated. At this point, I will continue doing business with my national brokerage house. They provide me with savings, checking and even a local office, which isn't that great, but I put up with.

I think the future will provide more options for on-line and phone customer service. Knowledgeable customers will be able to select knowledgeable service providers. Unknowledgeable customers will be automatically transferred to unknowledgeable service providers in remote locations .

Also, after the current debacle, Bitcoin will return under a new company. The idea is too good !

 

[Revoltingest]

Because banks have been so uncreative in their product offerings....

I've found local banks to be more creative in their lending, but gov regulators place strict limits on this.
Electronic banking & fraud prevention offerings differ from bank to bank, so there is room for some creativity.

 

[Avi1001]

I own a business. Why would you ask me such a question?

I think his post is trolling .

 

[MysticSang'ha]

I've found local banks to be more creative in their lending, but gov regulators place strict limits on this.
Electronic banking & fraud prevention offerings differ from bank to bank, so there is room for some creativity.

Agreed. Again.

Local banks who know their patrons know family assets acquisitions and losses, income gains and losses, and anything else that can show trends here and there. Plus, since I've personally been with the same local bank (that only has the one location) for the last 20 years, there is no doubt to my loyalty and to my financial integrity. We together have a mutual trust.

Knowing your base while knowing your available resources offers all kinds of creative solutions for lending and money management.

 

[esmith]

Traditional banks bring almost no value added. My experiences with them have nearly always been very bad. This is true for both large and small banks. I think we need fewer bankers and more scientists / engineers.

Full service brokerage houses can handle banking and at least bring some value added.

And artists, craft workers, and handymen (and women).

Overall, fewer crony-capitalists and fewer bankers will deflate the economy, but I think it might be a better alternative than having the dollar bubble burst. We won't be the empire we are enjoying now, and the citizens will have to rely on localizing trade, banking, and politics...and....

Oh darn. That sounds pretty good.

So, you would have us going back 300+ years? I assume you do not want anyone starting new businesses, planting crops, building homes, scientific research, and many more endeavors that require capital investment provided by lenders?

I own a business. Why would you ask me such a question?

I think his post is trolling .

I was responding to the espoused idea that was put forth that we be need less traditional banks and was I implying that banks, if not hampered by excessive government regulations, are the lenders that provide the capital required by many to operate and start new businesses. If those of you that disagree with my premises so be it, just don't accuse me of posting just to cause a controversy.