While you may be hitting the nail on the head: the system of finance hasn't changed enough to foster change in the ways change are needed. The problem is that the dominant firms wield market power and control the world's financial products. This means they can make out of control profits disconnected from normal business realities. When business wield market power, they typically garner profits that would otherwise be widdled away through competition.
The financial industry, through lobbying, the federal reserve system, and the revolving door between it and the government, have created institutions that have such a high barrier to entry, that they face no real competition. We cannot create a competitor to Bank of America. We have to trust the Bank of America's competition with Goldman Sachs, Wells Fargo and Citibank will be enough to see the banks make smart bets, charge lower fees, take a smaller cut, and demand fewer bailouts when they screw up. The problem is we've seen them do none of these things. This implies the financial instituions are essentially working in trust, blocking new entrants, and marching lock-step to continue making massive profits.
The fact that the largest bonuses in Wall St. history occurred just after the financial bailout will always serve as the most obnoxious proof of the deceit of the industry as it exists in its current structure.
The financial industry, through lobbying, the federal reserve system, and the revolving door between it and the government, have created institutions that have such a high barrier to entry, that they face no real competition. We cannot create a competitor to Bank of America. We have to trust the Bank of America's competition with Goldman Sachs, Wells Fargo and Citibank will be enough to see the banks make smart bets, charge lower fees, take a smaller cut, and demand fewer bailouts when they screw up. The problem is we've seen them do none of these things. This implies the financial instituions are essentially working in trust, blocking new entrants, and marching lock-step to continue making massive profits.
The fact that the largest bonuses in Wall St. history occurred just after the financial bailout will always serve as the most obnoxious proof of the deceit of the industry as it exists in its current structure.