When banks plot to swallow up a rival, they seek to win over shareholders of the target bank. But what if they had to field not only shareholders, but also the wider public? This is one radical proposal from a major US regulator: public hearings for large bank merger applications.
The Federal Deposit and Insurance Corporation would also effectively ban branch closures for three years after a merger culminating in a bank with $100bn or more in assets, saddling acquirer banks with overheads precisely when they need to slash costs. Naturally, community banks are thrilled.
