On 08 November 2012, there was a conference, put on by Mergermarket, in which analysts warned that the 7,000 small banks left in the United States could soon be reduced to just a few hundred.

The analyst, many of whom work for the Too Big to Fail banks, said that at least half of all small banks are in trouble money wise, and that at least 2,000 need to be sold (read ‘taken over by the big banks’).  The analysts said the whole process will take another ten years to complete!

The analysts also tried to blame it on the elections, saying it’s for certain the Dodd-Frank rules will become permanent.

One of the results of the destruction of the small banks is that it will reduce the availability of loans by 10%.  Regardless of the election results, this actually sounds like an attempt to meet the orders of the International Monetary Fund, and World Bank, in deleveraging the country.

A CNN/Money/Fortune analyst pointed out that it’s actually the Too Big to Fail Banks who dominate the loan market, about 90%!  Also, because of this loan monopoly by the Big Banks, their outrageous interest rates and fees are costing consumers (those who can get credit) an estimated $100 billion per year!

Since it’s the Too Big to Fails who dominate the loan/credit market, perhaps this is their way to avoid complying with the IMF and World Bank orders to deleverage, by using a red herring argument to shift attention onto the more consumer friendly small banks (plus they get to kill off even more competition)?

“I’d say that’s pretty good evidence that we should figure out a way to keep small banks around.”-Stephen Gandel