Treasury Secretary Janet Yellen, told CEOs of large banks executives that more bank mergers are necessary. This could be beneficial for industries to continue navigating through crisis. This comments from Yellen comes into evidence that Biden officials start to warm up idea of bank mergers. Although, they have concerns from progressives and the admnistrations’ own scrutiny over corporate concentration. Looking back from the banking crisis in 2008, there were series of bank failures and the fall of stock pieces. There were also concerns about the business model of regional and mid-size bank that forced a regulatory to strategize.
For sure, regulators prefer corporate mergers where strong banks take over weaker ones due to destabilizing bank failures. Washington policy analyst at Raymond James, Ed Mills believed that consolidation in inevitable. He added that the progressive backlash is the Catch-22. But against this view, Janet Yellen spoke with JPMorgan Chase CEO Jamie Dimon, Citigroup CEO Jane Fraser as well as other board members of the Bank Policy Institure. Based on the meating Yellen noted the banking stress due to the strength and soundness of the U.S. banking system. She thanked the bankers of their leadership and support. Readout about bank mergers are not mentionned.
Based on many sources, Yellen discussed about bank merges during the meeting with bajk CEOs. Yellen gave remarks from the U.S. regulators who have said that there might be bank mergers . Based on the source, Yellen believes that the nation’s diverse banking sisyme is a solid foundation that could help navigate the crises. Yet, early last month, regulators permitted JPMorgan Chase, the nation’s largest bank to buy most of First Republic.
