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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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