This is the kind of idiotic thinking you get with Libertarianism. They're thinking, simplistically, that "competition is good", but the problem is that they're

This is the kind of idiotic thinking you get with Libertarianism. They're thinking, simplistically, that "competition is good", but the problem is that they're already in competition: in your case, the bank is already competing against many other banks out there. In Sears' case, they were already competing against Kohl's, Home Depot, Best Buy, etc. Internal competition might reduce a little waste and get people more motivated, but it isn't made for when considering the outside competition. Another example I can think of is Microsoft under Ballmer; they operated that way to a certain extent. It didn't work out too great for them either, but they were a monopoly of sorts, so they had the luxury of being able to operate that way without it killing them.