Student Assigned Article Summary IV

Student Assigned Article Summary IV - Shu-Ya Peng Student...

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Shu-Ya Peng Student Assigned Article Summary IV - U.S. Is Said to Be Urging New Mergers in Banking Article Summary The Treasury plan to have a new package to encourage banks to buy or merge with rivals. With the credit crisis, many banks open to sell themselves. However, the rivals are not capitalized enough to buy them. Treasury hopes to have a plan to offer enough capital to facilitate the buying. The capitalization is intended to encourage banks to lend the money out to help struggling homeowners. Analysis: How much should U.S. government intervene the market? Will the interventions help resolving the financial crisis? After all, government has never been efficient in creating wealth. Traditionally, government interventions only redistribute wealth instead of creating wealth. If Treasury fund banks to buy rivals, it will definitely reshape the retail banking market. There will probably be few players and the remaining players should be bigger. Are having fewer players good for the market? I think the answer is both yes and no. Smaller
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This note was uploaded on 03/14/2009 for the course ACCT 540 taught by Professor Zhou during the Spring '09 term at Binghamton University.

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Student Assigned Article Summary IV - Shu-Ya Peng Student...

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