Excellent article about regulating big banks. Big banks were created by regulation. Limited competition created big banks and now the government is trying to dismantle them. The issue is that there is no guarantee that the government will break the banks off well and the broken up banks can merge again and become big again. Basically, it will be a new permutation between the broken up banks. The best way to solve huge bank problems is to lower the barrier to entry. Competition will restore the power of the market. Big banks will break up once they realize that they cannot compete with a bloated bureaucracy and excessive complexity. Hence, the most effective way to break up the big banks is through lower regulation that increases competition.

The good news is that there is financial technology revolution. Although roboadvisors, crowd-funding, and other innovative financial services are still in infancy, the momentum is on. So what can ordinary individuals do? Well, the easiest way is to try out and use new and innovative fintech services (Acorns, Wealth Front, Lending Club…). Of course, they are far from perfect and their robustness may not have been fully tested (no big crisis yet) but dabbling into fintech is not a bad idea. After all, one of the best ways to show your opinion and change the world is voting with your dollars.

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