The manner in which a bank deals with its employees in the aftermath of a layoff can be just as important as the manner in which the layoff itself was conducted.
Until a recent outcry, the Fed was going to give Capital One's acquisition of HSBC's credit card businesses and ING's deposits a pass without even holding pro forma hearings.
Consolidation has failed to reduce employment and increase efficiency. Even after many mergers and acquisitions, industry expenses are high and profit is anemic.
Banks should be subject to reasonable rules and oversight, but universal application of reviews are for the most part overkill threatening the ongoing viability of many small banks.
The paper quotes First Niagara CEO John Koelmel as saying it will eventually have to do a capital raise to support the larger balance sheet. Antitrust issues may also arise, FT says.
