Bank of England’s Chief of Financial Stability: Internet Technology Will Break Up Big Bank Monopoly

    We don’t need giant banks. As we noted in July, small banks do much more lending than big banks: Do we need to keep the TBTFs to make sure that loans are made?   Nope.   USA Today points out: Banks that received Federal assistance during the financial crisis reduced lending more aggressively and gave bigger pay raises to employees than institutions that didn’t get aid, a USA TODAY/American University review found.   ***   The amount of loans outstanding to businesses and individuals fell 9.1% for the 12 months ending Sept. 30, 2009, at banks that participated in TARP compared with a 6.2% drop at banks that didn’t. Dennis Santiago – CEO and Managing Director of Institutional Risk Analytics (Chris Whalen’s company) – notes: The really shocking numbers are in the unused line of credit commitments of banks to U.S. busin...