It became harder for small banks to challenge big banks, because regulations disproportionately increased small banks' cost - which is partly why there is lamentably inadequate competition in banking today (many would say).
Lamentably, the two governors involved in this drama, New Jersey's Chris Christie and New York's Andrew Cuomo, have done nothing to stop the Port Authority's shameless gambit to squeeze more money out of a charity to which 900, 000 mostly small donors have contributed.