It's hard for small banks to go to war against Bank of America (BAC 1.18%) and JPMorgan (JPM 0.78%), and even smaller players like US Bancorp (USB 0.99%) and Fifth Third (FITB 1.17%). But does that mean there's no place for them in the industry? Slate writer Matthew Yglesias, argues smaller banks are a burden on the economy and the industry would be more competitive if the U.S. Bancorps and Fifth Thirds of the world grew to compete with Bank of America and peers. Meanwhile, American Banker's Washington Bureau chief takes the other side of the argument. In this segment of The Motley Fool's financials-focused show, Where the Money Is, banking analysts Matt Koppenheffer and David Hanson take sides on this divisive issue.

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