Bank Buyers Demand Incentives Amidst US Banking Crisis and Insider Trading Investigations

Troubled banks in the US are waiting for the FDIC to take over before buyers will step up, creating fears that the current turmoil will accelerate the concentration of the banking sector in the United States around a handful of institutions, reducing competition for consumers and deepening the risk if a giant bank fails. The government-brokered purchases of First Republic, Signature and Silicon Valley banks have created a vicious cycle. Publicly-traded buyers are now motivated to wait for ailing lenders to collapse so they can get better terms from the FDIC.