Bank Eat Bank: Bailout Encourages Mergers

Published 12 months ago

With newfound bailout money in their wallets, big banks have been rushing to gobble up smaller ones. At the center of these mergers is the Treasury Department, led by Goldman Sachs alums Henry Paulson and Neel Kashkari. While neglecting struggling... more

With newfound bailout money in their wallets, big banks have been rushing to gobble up smaller ones. At the center of these mergers is the Treasury Department, led by Goldman Sachs alums Henry Paulson and Neel Kashkari. While neglecting struggling homeowners they have created major incentives for widespread bank consolidation, which could lead to a host of new problems. And, as members of Congress recently noted, Treasury officials seem to be making the rules up as they go. less

Tags: bailout bank america barney frank citibank consolidation dodd economic crisis foreclosure goldman sachs issa jp morgan kashkari kucinich latourette national city paulson pnc tarp treasury united states wachovia wells fargo