$250bn Bank Rescue Will Encourage Acquisitions, Not Lending
Oct 30th, 2008 | By William Patalon III | Category: Politics & EconomicsThe Treasury’s plan to inject $250 billion in capital directly into US banks is underway. But William Patalon III says some of these taxpayer funds will be used by big banks to acquire junior competitors. This means the increase in lending that the plan is supposed to spark will be modest at best. And less competition in the banking sector could mean a rise in fees going forward.