Market Concentration, Risk-Taking And Incompetence

That US banking power is concentrated is not a matter for debate: the big four have half of the market for mortgages and two thirds of the market for credit cards; five banks have over 95% of the market for over-the-counter derivatives; three US banks have over 40% of the global market for stock underwriting. What is more contentious is whether size equates with financial instability. Following our 8 February issue's Closing Bell, we have decided to investigate in more depth the relationship between market concentration, mergers and risk-taking in the banking sector, as this relationship is presented as the

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