Friday, August 28, 2009

Has The Bank Bailout Hurt The Consumer Market

The Wash Post reports that the bank bailout during this financial collapse has hurt the market for banking as consumer choices are limited and big banks hold to much market power in the United States market.

The Post reports:
"J.P. Morgan Chase, an amalgam of some of Wall Street's most storied institutions, now holds more than $1 of every $10 on deposit in this country. So does Bank of America, scarred by its acquisition of Merrill Lynch and partly government-owned as a result of the crisis, as does Wells Fargo, the biggest West Coast bank. Those three banks, plus government-rescued and -owned Citigroup, now issue one of every two mortgages and about two of every three credit cards, federal data show."
Camden Fine, president of the Independent Community Bankers of America, said:
"'To favor one class of financial institutions over another class skews the market. You don't have a free market; you have a government-favored market,' he said. 'We will never have free markets again if you have the government picking winners and losers.'"
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