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this is what happened if you have too many banks, small, mid...

$First Republic Bank(FRC.US)$ this is what happened if you have too many banks, small, mid and big, in the US banking systen - increased competition leading to smaller banks taking on more risk to increase earnings; lower quality of regulation (you can more effectively regulate and provide oversight to say 10 big banks over say 500 banks); and most importantly, a higher bank count means higher probability of a bank failure and current and past events have shown even a small bank’s failure could turn thr entired industry upside down.
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