Banking giants like Capital One have long exploited the lack of competition to price-gouge families with predatory credit card interest rates and hidden junk fees……Even less competition under this merger means these companies will have less ‘incentive’ to check their greedy practices.

It’s the old “too big to fail” conundrum.

“There are questions of links to other parts of the financial system and how distress at such a large institution, should it happen, could cause wide scale problems in banking,” Sedunov said. “I’m not saying any problems are imminent, but this creates potential for compounding issues if one does arise.”

And just last week, on Friday, the Consumer Financial Protection Bureau put out a report that puts the idea of big-bank consolidation in a rather unflattering light.

It turns out, the largest credit card companies, including Capital One, are charging “substantially higher” interest rates than smaller banks and credit unions, according to the report.

Part of the reason for that, the report found, was a “lack of competition.”

The companies are going to argue that the cost-savings and operational streamlining will generate savings that they can pass along to the consumer through lower prices or better service.

The cynical point of view is they’re going to realize the synergies and pass them straight on to the shareholders and ignore the consumers, or even realize additional market power and make the terms worse for borrowers and for consumers.

https://www.cnn.com/2024/02/20/economy/capital-one-discover-credit-card/index.html?

But…but…it’s the free of consequences market…and..and…people should make their own banks….and…and…Americans workers are free to starve…and their ‘right to work’ forbids them unions…and…and…

Far right extremists libertarians bros whining against politics trying to hide corrupt lobbying demolishing consequences….but..but…here..is supply..and…demand…..and….printing…..🤢

by BikkaZz