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....of larger banks that seem to have weathered this storm in fair shape, such as Wells Fargo, buying up banks like WaMu who are in bad shape? Forgive me, I really know very little about economics, but I have been trying to learn in the last 6 months or so, with everything that is going on. Could there eventually be a point where too many banks are failing and there will be no one with enough capital to buy them? Is it possible that out of this there will emerge just a handful of "superbanks" that control everything? It just seems like every time there is a problem with a bank, someone else buys them. Is this eventually going to "run out"? And why does the Fed need to step in and "broker" sales between banks? Why is that even necessary?
Thanks, I hope none of my questions make me appear too hopelessly ignorant. Just a few things I can't seem to find answers to.
I'm probably bank ignorant too, but I'll answer anyway. Your "superbank" idea happens all the time. WF bought out my last bank.
And, I think businesspeople open small banks in the hopes of being bought up by a WF.
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