The Fed will not automatically block bank mergers even if they result in increased risks to the...

|By:, SA News Editor

The Fed will not automatically block bank mergers even if they result in increased risks to the financial system, Fed Governor Daniel Tarullo says as it evaluates Capital One’s (COF -0.2%) proposed acquisition of ING’s U.S. online banking business. Regulators should balance the potential cost of a larger bank failure vs. potential benefits of a merger, he says.