American Deposits Being Monopolized by JPMorgan, Wells Fargo, and Other Banks, Accuses 'Big Short' Investor Steve Eisman of Forming a New Banking Conglomerate in the US
Steve Eisman Warns of Looming Banking Cartel Threatening Affordable Financial Services
Hey there, fellas! Let's dive into some financial gossip. Legendary investor Steve Eisman is sounding the alarm on a potentially scary scenario for American customers. He's talking about a group of top U.S. banks forming a "cartel," with big names like JPMorgan Chase and Wells Fargo leading the pack.
In a recent chat with The Compound, this Wall Street OG pointed out that there hasn't been much M&A (mergers and acquisitions) in the banking industry since the 1990s. According to Eisman, it's about time we had a wave of mergers, and here's why:
- JPMorgan's share of U.S. deposits has ballooned from 7% in 2007 to 14% today – a significant increase.
- The rise of JPMorgan can be explained by two primary reasons:
- Expensive regulations weigh less on powerhouse banks.
- The cost of technology has exploded, and only giants can afford this tech-heavy expenses.
So what happens if we keep things as is? If post-Dodd-Frank policies continue, we'll see JPMorgan, Wells Fargo, and other heavyweights take even more market share. Smaller banks will disappear, and eventually, we'll have just a couple of colossal banks left with some community banks clinging on.
Sounds a bit like Canada's banking system, huh? Eisman doesn't want the U.S. to end up with a cartel-like arrangement where banking giants do as they please and charge consumers more.
But Eisman wasn't all doom and gloom. He thinks banks like US Bank and Comerica should merge to remain competitive. We don't want to end up with a cartel; we want a thriving, competitive economy! Don't forget to follow us on X, Facebook, and Telegram to stay updated on the latest finance news. 🚀
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making high-risk investments in assets like Bitcoin, cryptocurrency, or other digital assets. Remember, your risky investments and transactions have consequences, and you're responsible for any losses. The Daily Hodl is not an investment advisor. Additionally, we participate in affiliate marketing.
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References
Footnotes:
[1] Eisman warning on potential U.S. banking cartel: https://www.bloomberg.com/news/articles/2025-06-24/jpmorgan-s-share-of-u-s-deposits-closes-in-on-14-in-a-cocoon-of-regulation-and-technology[2] Eisman calls US Bank and Comerica merger to compete with the behemoths: https://www.cnbc.com/2025/06/24/eisman-us-bank-and-comerica-should-merger-to-compete-with-giants.html[3] Disclaimer: https://www.thedailyhodl.com/disclaimer/[4] About us: https://www.thedailyhodl.com/about-us/[5] Terms and Conditions: https://www.thethedailyhodl.com/terms-conditions/[6] Privacy Policy: https://www.thedailyhodl.com/privacy-policy/[7] Editorial Policy: https://www.thedailyhodl.com/editorial-policy/
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Steve Eisman's warning about a potential banking cartel raises concerns in the financial world.As top U.S. banks like JPMorgan Chase and Wells Fargo consolidate their power, altcoins and cryptocurrency may present an alternative for affordable financial services to investors.*In light of Eisman's call for US Bank and Comerica to merge, the role of blockchain technology and cryptocurrency in sustaining a competitive business environment becomes increasingly relevant.
