Reuters reports on John Berlau's new study for the National Center for Policy Analysis, that explores the failures of the "to big to fail" docrtine and what Congress should do to promote competition instead.
"In the financial industry, as in any other industry, greater competition can help bring stability, innovation, and choice," says Berlau. "These unofficial government policies have effectively stunted growth in the community banking sector, and now businesses and consumers are paying the price."
"It is time to bring what the great economist Joseph Schumpeter called 'creative destruction' to the banking industry, by bringing in the competition from new entrants that exists in every other industry," says Berlau. "There are no banks like new banks."
Read the full article at Reuters.