It has grown quite clear that the US government is no fan of big banks and wants to ensure that it is uneconomical for them to get any bigger. As banks get larger, they will be forced to adhere to tighter capital requirements, face stricter leverage requirements, and alter their capital structure by issuing more subordinated debt, helping to insulate deposit holders (and by extension the FDIC) from losses. The Federal Reserve even has veto power over a company's dividend and share buyback policy, making me wonder why these banks even bother to have boards of directors when the government is usurping their powers.
Essentially, the U.S. is turning the biggest banks into utilities by making rapid asset growth uneconomical...
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