What Bank Mergers Mean for Credit Cards

Posted by D. Daniel Sokol

David Balto (Center for American Progress)has written on What Bank Mergers Mean for Credit Cards.

ABSTRACT: The continuing financial crisis has led to calls for greater financial services consolidation—under the premise that consolidation will enable at least some banks to survive—and for the ramping down of antitrust enforcement to permit it. In the case of credit card issuers, however, ramping down antitrust enforcement is a mistake—a merger is forever and the cost of increased concentration in terms of higher prices and lower quality service for consumers will last far longer than the economic downturn, however severe.