I read the news today - oh boy (Monday edition)
Breaking News Alert
The New York Times
Monday, September 29, 2008 -- 8:29 AM ET
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Citigroup Buys Banking Operations of Wachovia
Citigroup has agreed to buy Wachovia's banking operations for $1 a share, a move that that would concentrate power within the nation's banking industry in the hands of a few giant lenders.
A friend once predicted that the consolidation of American business would one day result in exactly three of everything; three banks, three drug companies, three internet providers, three phone companies... three choices, with little if any competition.
I wish this triad philosophy also included political parties.
From the New York Times:
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. Some small and midsize banks, already under pressure, might have little choice but to seek suitors.
Greater scrutiny... from our government? Federal regulators. Do we still have those? I thought they had all been outsourced to the banks and companies they were regulating.
Yes, I'm sure the prices will soon be set; undoubtedly well above our puny heads. Welcome to the new Gilded Age.
Labels: bankers, banks, financial crash, financial crisis, New York Times, Wall Street
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