The FTC works for the consumer to prevent fraudulent, deceptive, and unfair business practices in the marketplace and to provide information to help consumers spot, stop, and avoid them. To file a complaint or to get free information on consumer issues, visit the website or call the toll-free number above. The FTC records consumer complaints (Internet, telemarketing, identity theft, and other fraud-related complaints) into the Consumer Sentinel Network, a secure, online database and investigative tool available to hundreds of civil and criminal law enforcement agencies.
So answer me this - in this land of freedom and opportunity-who would stand in the way of a corporate deal? Usually not the FTC, no matter what the size, scope or topic. The sad part is the FTC is meant, in part, to defend us (the US citizen) from corporate deal making that reduces our choices and threatens our markets/freedoms. Threatens? IF you only have 1 airline, they can charge any amount- the market becomes irrelevant since that one company IS the market. That is a threat. What about all the players in an industry acting similarly? What about where the reduction in companies- although still leaving room for multiple market choices yet would not allow for new competitors given natural impediments (oil for instance)? That is what I mean be threaten. And in this day and age- we have a new threat and you all know what it is- “too big to fail”.
Too Big to Fail is the poster child statement for all the banks, investment house, car companies, etc that just couldn’t be allowed to fail for systemic risk. Really? What about the threat now then? Most of the very companies that are now around are bigger- so now what?
Idea- My answer is really simple- break them up. When AT&T was this huge monopoly back in the early 80’s it was split into about 7 separate entities and lived happily ever after. It could still compete- just differently. Why not do that with banking? Take the top 15 banks and break them up- the mid level tier of banks for get a boost since the field would be leveled, the top banks would be forced to become lean and compete, the marketplace would benefit by true competition, and the consumer would benefit by better choices by banks much more responsive to what their needs are.
SO then WHY isn’t the FTC saying anything like this? Is this not their very purpose? Why are they approving deals to make less competition and more too big to fail?