High banking fees are just the tip of the iceberg. Here’s what went wrong with the banking industry and what we can do about it.
Banking is not really a competitive industry. In reality, it’s more like an oligopoly — a scenario in which an industry is controlled by a small number of firms. An oligopoly is a lot like a monopoly, where one firm controls the whole show. Only in an oligopoly, you have two or more firms calling the shots, and they love to do things contrary to the notion of a free market, like, say, colluding to raise prices. There are a few common signs that tell you when competition has left the building in a given industry. See if any of these look familiar.