Bailout pushing banking mergers

Professor Cornelius Hurley, director of the Graduate Program in Banking and Financial Law and its related Morin Center for Banking and Financial Law at the Boston University School of Law, offers commentary on how the bailout is now pushing banking mergers.

 

“Treasury is now concerned that its huge equity infusion will be used by banks to buy other banks rather than to make loans. This is a real concern and it stems from Treasury’s misguided decision to be a purely passive investor in banks rather than taking board seats at the banks it invests in as has been done by Britain and the Netherlands.”

Contact Cornelius Hurley, 617-353-5427, ckhurley@bu.edu

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