Monday, August 31, 2009
Too Big to Fail, So They Keep Growing
Wells Fargo, J.P. Morgan Chase and Bank of America keep on growing. Bank of America alone has had a 138% combined asset growth over the past year, after its acquisition of Countrywide and Merrill Lynch. Unfortunately this growth is leading to much fear concerning these major banks. As these banks grow, especially now that they know they have government protection, they are able to continue corrupt practices, in that they can't be punished because of their size and because the government believes that their fall would alone for even more American financial ruin. They can seemingly continue their growth process unchecked. On top of this it could lead to more problems for mid-sized banks because of larger banks' growing reach.