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59 Antitrust Bull. 9 (2014)
Competition Policy and Too Big Banks in the European Union and the United States

handle is hein.journals/antibull59 and id is 17 raw text is: THE ANTITRUST BULLETIN: Vol. 59, No. 1/Spring 2014 : 9 C ompetition policy and too big banks in the European Union and the United States BY ALBERT A. FOER* AND DON ALLEN RESNIKOFF** This article examines the role of antitrust and competition policy in regulation of large banks made fragile by the financial meltdowns of 2007-09. We compare crisis-related regulation in the European Union and the United States and find that in the European Union, competi- tion policy experts played a key role in applying crisis-related finan- cial regulation, but in the United States they did not. Consequentially, the European Union avoided making banks bigger as a side effect of making weak banks stronger. In the United States, bank consolida- tion was encouraged. We argue that in the United States, policies to preserve competition should be given a more significant role and made part of an on-going plan that will apply even in a time of crisis. At minimum, the Antitrust Division of the Justice Department should be promptly consulted by the prudential regulators of financial insti- tutions on all matters likely to substantially affect the structure of the financial services industry, including market power issues. KEY woRDs: antitrust, competition policy, concentration, consolidation, financial services industry, bank mergers *President, American Antitrust Institute. Principal, Don Resnikoff Law Firm and member of the American Antitrust Institute Advisory Board. AUTHORS' NOTE: Thanks to Sandeep Vaheesan and Katherine Jones for their edito- rial assistance. @ 2014 by Federal Legal Publications, Inc.

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