The Globe and Mail reports in its Saturday edition that Home Capital Group's (HCG) fall from grace suggests a shakeup of the residential mortgage finance sector is afoot. The Globe's Barrie McKenna sees the HCG story ending with the Big Six banks reinforcing their dominance. Canada has not seen a major consolidation in financial services since the wave of trust-company failures in the 1980s and 1990s. There were 23 bank failures in the 1980s and another 18 between 1990 and 1996. Many others fell into the arms of the big banks. There has not been another failure in more than two decades since. HCG's problems may be a prelude to a new wave. This week, a syndicate of the big banks committed to lend $2-billion to HCG rival Equitable Group. Like HCG, it has been stung by a flight of depositors. Banking has followed a familiar pattern in Canada. New entrants come in, expand rapidly and then retreat or fail, leaving the big banks with their stranglehold. The result is that Canada's bank failures have never seriously threatened the financial system. Consolidation means less competition, more fees and higher rates. HCG's woes are a bad omen for borrowers and investors alike.