Are American Companies Becoming Too Large For Fail?

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Are american companies becoming too large to fail? In todays economy that is one question that is often asked. Throughout this paper companies will be examined and compared to their companies regulation in the attempt to answer this question. First the big four banks including J.P Morgan Chase and Co, Bank of America, Citigroup inc, and also Wells Fargo. After looking at the banks, the regulations, and oversight towards them will be examined. The regulation and oversight are a few of the reasons many American companies are too big to fail. The last two things that will be addressed will be the Walmart corporation and the lawsuit of Metlife. J.P Morgan Chase, Bank of America, Citigroup, and Wells Fargo are considered “The Big Four” banks…show more content…
Since 2007, three of the four banks have grown larger. Wells Fargo alone has tripled in size. She continues to tell people listening to Citigroup she agrees with them and the act should be torn to pieces. As of January 27th, 2015, the stocks of these major banks appeared to be lower than the usual. Together the four banks hold 8.2 trillion dollars in assets, that is roughly half of Americans annual GDP. (Duggan, Wayne) Over the years the regulations and oversight of the banks seem to be fraud in many Americans’ eyes. “Operation Choke Point” has been put into action by The Republican Party. This operation looks to stop fraud within the banking system, whether through consumers or bankers themselves. Through the operation, regulators look for illegal activity in the banks legal paperwork. The Republicans claimed the goal of this operation was to put gun sellers and money lenders out of business, while the Federal Deposit Insurance Corporation (FDIC) says this is putting pressure on the banks to stop supporting these types of companies. FDIC also claimed “Operation Choke Point” is through the justice department and separate from bank regulation. This was used as a reassurance so banks do not release relations with actual businesses. FDIC has now requested anytime a bank wants to terminate a consumer’s bank account or decline a transaction, it must be written in writing and discussed with the branch managers. When discussing
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