In just 11 years, all banks in the U.S. will be gone. At least, that's what extrapolating the current pace of bank consolidation would suggest. Between April and August of this year, there were 79 mergers or closings and 9 failed banks, according to the Federal Deposit Insurance Corp. Guess how many banks were established during that period? None. Zero. Nada.

We understand why banks merge (to reduce expenses) and why banks fail (failed credit policies). But why has the establishment of new banks virtually stopped since the crisis?

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