9.29.2008

Let's go around again

"Too big to fail" becomes too bigger to fail...



Citigroup will acquire the banking operations of the Wachovia Corporation, the Federal Deposit Insurance Corporation said Monday morning, the latest bank to fall victim to the distressed mortgage market.



The sale would further concentrate Americans’ bank deposits in the hands of just three banks: Bank of America, JPMorgan Chase and Citigroup. Together, those three would be so large that they would dominate the industry, with unrivaled power to set prices for their loans and services. Given their size and reach, the institutions would probably come under greater scrutiny from federal regulators.

[From Citigroup Buys Bank Operations of Wachovia - NYTimes.com]

Greater scrutiny from federal regulators. Yeah, that's pretty comforting.



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