WASHINGTON, D.C.—Shayna Olesiuk, Director of Banking Policy, issued the following statement in connection with the release of a new Fact Sheet: “Bank Mergers Require Robust Scrutiny to Ensure that Consumers’ Interests Are Not Sacrificed for Wall Street’s Profits.”
“Main Street Americans benefit from a diversified banking system that includes community banks, regional banks, and large banks. When bank mergers are done right, they are a healthy part of that system. But when mergers are done wrong, they can be harmful, costly, and counterproductive. Unfortunately, the banking regulators have made the merger process like a rubber stamp that always results in approval. In the case of large banks, merger decisions often prioritize Wall Street’s profits over Main Street’s interests.
“In our fact sheet we explain how consolidation in the banking industry negatively affects consumers, small businesses and communities. Large banks offer worse credit card terms and interest rates than small banks and credit unions. And community banks provide more lending to Main Street Americans than larger banks.
“Fundamental improvements are needed in the bank merger process, including strengthening and clarifying the agencies’ policies, as well as providing more details metrics and guardrails to protect consumers and financial stability. Mergers are too consequential to financial stability and consumer protection to be made hastily or with limited information.”
The Fact Sheet is available here.
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Better Markets is a non-profit, non-partisan, and independent organization founded in the wake of the 2008 financial crisis to promote the public interest in the financial markets, support the financial reform of Wall Street and make our financial system work for all Americans again. Better Markets works with allies—including many in finance—to promote pro-market, pro-business and pro-growth policies that help build a stronger, safer financial system that protects and promotes Americans’ jobs, savings, retirements and more. To learn more, visit www.bettermarkets.org.
