Should Savers Root for Chase Bank to be Broken Into Itty Bitty Pieces?
Posted on April 14th, 2010
Jamie Dimon of JP Morgan Chase was recently named “Banker of the Year” by American Banker magazine.
Author Simon Johnson, meanwhile, has been vehemently calling for the giant banks to be forcibly broken up. Of late, Johnson has been taking particular aim at Chase and Dimon.
For people who are trying to get higher interest rates on CDs, money market accounts, and savings accounts, it’s tempting to side with Mr. Johnson and outright root for Chase, Wells Fargo, B of A, and Wells Fargo to receive the AT&T treatment, and be broken up into itty bitty pieces.
Wouldn’t more competition between banks for deposits naturally drive up interest rates on CDs, money market accounts, and savings accounts? After all, the Big 4 Banks hold about 40 percent of total deposits as of now–this type of dominance while paying offensively low deposit rates.
Would a break-up of Chase Bank automatically correlate to higher interest rates on CDs, money market accounts, and savings accounts?
Not necessarily, but if you haven’t been following Simon Johnson’s arguments as to why humongous banks are bad for savings investors, it may be time for a trip to www.13bankers.com.
The guy makes some solid points, and has a British accent.
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Tags: Bank, Bank Broken
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