Although most of the Federalist Papers were written by Alexander Hamilton, James Madison wrote two of the most famous; numbers 10 and 51. In the tenth paper, Madison starts by claiming that a Union that is well built can control the dangers started by factions. Madison defines faction as; any group of citizens who, at the expense of others, develop their beliefs or economic interests.
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Among them are: to protect the rights of minority interests (not in the sense of race but in the sense of vested interest in various issues), to promote greater understanding, to encourage compromise where compromise would be beneficial.
In the United States, there are factions. Although they are not typically called faction but instead are called special interest groups.
Modern day factions are everywhere in the present. Factions and their ideals run today's society, especially secret societies, powerful factions that can manipulate everything in world affairs. These secret societies are the mostly known as the Freemasons, the Trialateral Commision, and the most notoriuos, Bilderburg. Now back to the main subject: the following are some of major modern factions currently existing. (The UN, the WTO, the NSA, DOD, CIA, al-Queda, Hezzbolah, etc.)
Democracy, then factions are no longer a concern since theoretically the biggest one will always be the Government.
They are divisive and create disunity.