Politico: Hsu makes a (limited) case for large bank mergers

July 11, 2023 Media

Acting Comptroller of the Currency Michael Hsu is still concerned about the concentration of large firms atop the banking sector. Some banks remain too big to fail or, as he’s warned in the past, too big to manage.

But injecting more competition into the marketplace might require some of Wall Street’s most formidable institutions to get even larger, he said during an American Banker webcast on Monday.

Still, any meaningful pivot is bound to upset progressives who’ve repeatedly warned of antitrust concerns. Sen. Elizabeth Warren (D-Mass.) blistered regulators for approving the U.S. Bank-Union Bank deal and has not let up even after a costly series of regional banking failures earlier this spring.

She’ll chair a Senate Banking subcommittee hearing examining bank mergers on Wednesday that will feature testimony from Morgan Harper of the American Economic Liberties Project and Alexa Philo of Americans for Financial Reform — two think tanks that have warned against consolidation.