Mega Mergers, as this hearing is being referred to, is certainly appropriate considering the implications of the transactions which have been announced. Consumers, regulators and, yes, Members of Congress should all be interested in the events of the last two months. The BankOne-First Chicago transaction consolidates banking in the Midwest. While mammoth, U.S. institutions would only claim nine of the top 25 spots in the world of financial services. International competition is a real issue.
Mammoth mergers raise issues.
I am not convinced that big is bad, as some might believe. In fact, the U.S. banking industry is probably one of the least concentrated in the world. Look at what is happening in Canada, where four of the top five banks are merging and will control 70 percent of all deposits. European Countries including Germany, Switzerland and others are dominated by a few large banks. We need to remember that there are more than 9,000 banks and savings associations in the U.S. with over 80,000 branches.