Fall 1991: Merger Mania in Banking

Volume 1, Number 2: “The U.S. Treasury, many in Congress, bank regulators, and some bankers have concluded that consolidating the banking industry into a few nationwide banking behemoths is the road to salvation.” But according to James L. Pierce, a professor of economics, consolidating “the industry into a few giants will not eliminate moral hazard, and it will not eliminate excess capacity.”