Big Banks Look More Like Utilities Every Day

(TheStreet) -- Not that long ago, big banks were said to be run like "casinos," but the comparison is losing steam. Regulatory crackdowns are making financial firms look more like heavily-regulated utilities every day. The government has done a sharp 180-degree turn from lax regulatory practices of the past: The president has heated up anti-Wall Street rhetoric; Congress has rendered some business lines unviable; federal regulators are micromanaging capital decisions; state attorneys general are railing against practices that consumers aren't fond of. Given the midterm-election battle approaching in Washington, one has to wonder whether the tighter regulation will last far beyond November. But for the time being, nearly every type of financial service is being targeted by the government in some way, shape or form. Mortgages? Check. Derivatives? Check. Credit cards? Check. Debit cards? Check. Trading? Check.. Life insurance? Check. Even pet insurance has been targeted by lawmakers in California. About the only thing banks can do these days without the government casting a stink eye is take in deposits. "There is little question that with the present setup at the White House and [Democratic] control of both Houses, the view of 'Wall Street' will remain hostile," says John Alan James, a professor at Pace University's Lubin School of Business, who spent decades consulting multinational corporations on regulatory issues. The reaction from the banking industry - and its investors - has been fierce. Big banks like Bank of America

, Citigroup

, JPMorgan Chase

, Wells Fargo

, Goldman Sachs

and Morgan Stanley

poured millions of dollars apiece into lobbying against various proposals before the Dodd-Frank reform bill was signed into law. They're now working with regulators to make sure the implementation goes smoothly. (Small banks have done the same for their own issues, but found a more conciliatory ear.) To read the rest, head over to