Friday, August 28, 2009

Banks 'Too Big to Fail' Have Grown Even Bigger

http://www.washingtonpost.com/wp-dyn/content/article/2009/08/27/AR2009082704193.html
Behemoths Born of the Bailout Reduce Consumer Choice, Tempt Corporate Moral Hazard.

When the credit crisis struck last year, federal regulators pumped tens of billions of dollars into the nation's leading financial institutions because the banks were so big that officials feared their failure would ruin the entire financial system.

Today, the biggest of those banks are even bigger.

The crisis may be turning out very well for many of the behemoths that dominate U.S. finance. A series of federally arranged mergers safely landed troubled banks on the decks of more stable firms. And it allowed the survivors to emerge from the turmoil with strengthened market positions, giving them even greater control over consumer lending and more potential to profit.

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