The decline in the number of banks has been accompanied by a substantial increase in the share of total banking assets controlled by the largest banking organizations. Nearly seventy-five percent of domestic banking assets are held by the 100 largest banks. The new BankAmerica will control 8 percent of all U.S. bank deposits. Consolidation May Be Unhealthy for Consumers. But failure to apply and enforce antitrust laws designed to promote competition would be devastating for consumers' pocketbooks.
Large banks require higher minimum balances to avoid fees.
Customers complain about dwindling services. The wide array of products and services being offered could lead to confusion for consumers and coercive practices. Consumers' life savings are at risk if they are not informed of the risks of products being sold, misled into believing a product is federally insured, or convinced to buy a product they don't need or can't afford. Consumers Union is concerned that overly permissive exceptions to traditional antitrust analysis are leading to a dangerous pattern of banking consolidation that could raise prices for consumers. These exceptions are contained in overly generous merger guidelines, relied on by the Board, and issued by the Justice Department.