Recall that the big acquisitions and mergers in the 1980s were so banks could be competitive with Sumitomo and Mitsubishi and other big Japanese banks. (Why was that again?)
Hence, we end up with a few Superbanks. Ask yourself why Citibank (C), Bank of America (BAC), Washington Mutual (JPM), and Wachovia (WFC) got to be too large to manage. And once again, I am compelled to ask why it is in the country’s interest that 65% of the depository assets are held by only a handful of banks.
To put this into context, consider the chart below, courtesy of banking analyst Dick Bove:
Originally published at The Big Picture and reproduced here with the author’s permission.