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> How is it the banks were the ones at fault, but the customers are paying for it. Market power. There are economies of scale in banks, so there are few banks
by VHRanger 9y ago
> How is it the banks were the ones at fault, but the customers are paying for it.
Market power. There are economies of scale in banks, so there are few banks which are huge and can generally afford to act shittily to their customers (unlike in competitive industries).
For the record, I don't think breaking up the banks or capping bank size will fundamentally solve the problem either.
- dx034 9y agoRather regulation. Banks have been hit with multi-billion dollar fines because they conducted business with the wrong people. Closing "good" accounts is less risky than paying exorbitant amounts because you failed to do so.