I have written with great frequency about the cronyism Big Government has delivered for Big Banks.  DC taxes and regulates everything in a HUGELY uneven fashion.  So as to best benefit their Big Business benefactors.  The financial sector is not immune to DC’s harms.

DC makes life miserable for the Big Banks’ small bank competitors.  This cronyism has murdered thousands of small banks.  The Big Banks then vulture in and buy the carcasses – and their marketshares – on the cheap.  It’s backdoor Big Bank market consolidation.  Exactly the opposite of the “Too Big to Fail” lie we were all told.

But DC’s assault on small banks is multi-frontal.  Another beneficiary of small-bank-destroying Big Gov cronyism?  Federal credit unions:

“(A) not-for-profit member-owned financial cooperative offering traditional banking services, including credit cards, loans and checking accounts.”

So…credit unions are banks.  With some distinct DC-Crony advantages. (more…)