Trusters of government often call for more regulations on businesses. Some government trusters believe that regulations dampen the greed and influence of Fortune 500 corporations and other big businesses. Unfortunately for them the data often conflict with this view. Business regulations invariably harm the smallest businesses and the poor while helping big businesses suppress their competition.
Now a study by Professor Marshall Lux of Harvard University shows that the increased banking regulations of the past decade have greatly harmed small hometown banks while helping multinational banks expand their market shares. Professor Lux, a former chief risk officer for JPMorgan, found that local banks’ share of the American lending market has fallen from more than 40 per cent in 1991 to 22 per cent last year (2014). At the same time, the market share of America’s five biggest banks has jumped from 17 per cent to 41 per cent.
See The Financial Times report here:
http://www.ft.com/intl/cms/s/0/70ff7362-aed4-11e4-ba71-00144feab7de.html#axzz3RCJEH5jI
