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A high-ranking bank regulator warned Friday that the banking industry has grown more concentrated and is now less competitive "than at any time in recent history."
Even after the new rules instituted after the 2008 crisis, the financial system remains "highly vulnerable" to crises, said Thomas Hoenig, vice chairman of the Federal Deposit Insurance Corporation.
Event - Chapman - University - Orange - County
Speaking at an event at Chapman University in Orange County, California, Hoenig laid out the case that Wall Street has remains dominated by big banks that remain "too-big-to-fail," meaning that investors believe they would get bailed out if they failed.
The four largest banks control 42 percent of industry assets, he noted in remarks prepared for the event. That means the industry is three times as concentrated as in 1992, when those banks held 14 percent of total industry assets.
Concentration - Megabanks - Institutions - Crisis - Urging
Some of that concentration reflects that some megabanks bought failing financial institutions during the crisis, sometimes at the urging of...
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