What happened to the concern for Financial Entities growing “Too Large to Fail”? M&A activity can only make them larger which seems to run counter to the opinion of our Regulators.
A slightly different twist to the regulatory issue. An acquiring company may be held responsible for past regulatory sins of the acquired. These sins may or may not be known at the time of acquisition and (IMOP) no amount of due diligence will uncover ALL of them. I think it would be safe to say that regulators might look at acquisitions as “fresh meat” related to heightened oversight.
What happened to the concern for Financial Entities growing “Too Large to Fail”? M&A activity can only make them larger which seems to run counter to the opinion of our Regulators.
A slightly different twist to the regulatory issue. An acquiring company may be held responsible for past regulatory sins of the acquired. These sins may or may not be known at the time of acquisition and (IMOP) no amount of due diligence will uncover ALL of them. I think it would be safe to say that regulators might look at acquisitions as “fresh meat” related to heightened oversight.