Banks will beat FinReg four ways: Outsmarting the government; going overseas; making customers pay more, and getting bigger.

The takeaway from this report is this. Don’t get mad at the people who work in the Financial Services industry. Politicians are the ones to blame for the results of the new rules.

The people who work in Financial Services lowered the cost of capital and credit as a result of competition and innovation. That process applies to virtually all industries in competitive markets.

Now, politicians step in and raise the cost of doing business by imposing rules and restrictions. What would any normal person do? Minimize the exposure to such impositions.

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