Yellen echoed remarks from US regulators who have said there may be bank mergers in the current environment, one person familiar with the matter said…reports Asian Lite News
US Treasury Secretary Janet Yellen told executives that more bank mergers may be necessary as the industry continues to navigate through a crisis, CNN Business reported, citing two people familiar with the matter. She was speaking during Thursday’s meeting with the CEOs of large banks.
The comments from Yellen provided further evidence that Biden officials are starting to warm up to the idea of bank mergers despite concerns from progressives and the administration’s own scrutiny of corporate concentration. The worst banking crisis since 2008, marked by a series of bank failures, plunging stock prices and concern about the business model of regional and mid-size banks, has forced a regulatory rethink. Regulators, of course, prefer corporate mergers where strong banks take over weaker ones over destabilising bank failures, CNN Business said.
“Consolidation is inevitable,” said Ed Mills, Washington policy analyst at Raymond James. “The progressive backlash is the Catch-22.”
Against this backdrop, Yellen met in Washington on Thursday with JPMorgan Chase CEO Jamie Dimon, Citigroup CEO Jane Fraser and other board members of the Bank Policy Institute, CNN Business reported.
CNN Business said the readout provided by the Treasury Department following that meeting noted that Yellen addressed the banking stress, reaffirming the “strength and soundness of the US banking system” and thanking the bankers for “their leadership and support.” But that readout did not mention a discussion of bank mergers.
However, sources tell CNN Business that bank mergers were discussed during Yellen’s meeting with bank CEOs.
Yellen echoed remarks from US regulators who have said there may be bank mergers in the current environment, one person familiar with the matter said.
Yellen also expressed confidence that the nation’s diverse banking system, which includes institutions of many sizes, is on a solid foundation in the wake of recent events, CNN Business said, citing the source. (ANI)
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