Efforts to break up large banks endanger the entire banking industry, large, medium and small banks included. In case you missed it, that’s what Art Johnson, chairman and chief executive of United Bank of Michigan, discussed in an American Banker commentary piece this past Tuesday.
Large financial institutions do deliver significant and unique value to the U.S. economy and American businesses, investors, and savers – and are an essential element of America's global financial leadership. To be a global financial leader, the United States needs institutions of all sizes, business models, and areas of expertise – including large diversified institutions. In his commentary, Mr. Johnson hits the mark when he describes the importance of having banks of all sizes and the role each of them play in the American economy:
“The strength of the banking industry — and the American economy — lies in its diversity. As trusted and reputable providers of financial products and services, banks of all shapes and sizes are inextricably tied to the growth and prosperity of the communities we serve. This interconnectivity and ability to easily meet the financing needs of everyone from local businesses to multinational corporations is what makes our country the world's premier financial center.”
You can read Mr. Johnson’s full commentary here.
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Welcome to ForumBlog. This is where our policy team analyzes the latest proposals, ideas, and news surrounding financial sector regulatory reform, trade, and the economy. Our goal is to provide thoughtful insights on the issues impacting the intersection of Wall Street and Washington, as we pursue policies that encourage savings and investment, promote an open and competitive global marketplace, and ensure the opportunity of people everywhere to participate fully and productively in the 21st-century global economy.