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> Basically, regulators don't have the balls to go after the big guys. The other component to this, is that regulatory compliance becomes a significant barrier
by julian_1 11y ago
> Basically, regulators don't have the balls to go after the big guys.
The other component to this, is that regulatory compliance becomes a significant barrier to entry for new firms. Incumbents end up gaining even more organizational power as market power increases, and competition on price and service quality decreases.
- marcoperaza 11y agoGoldman Sachs has even mentioned this as an advantage on earnings calls. The regulatory burden on the financial industry is insurmountable for a new entrant.