Commercial banks in the U.S. often own the corporations they lend to.

Question

Quizplus · Accepted Answer

It is illegal for commercial banks in the U.S. to own the corporations they lend to due to anti-trust laws. This practice could lead to unfair competition and monopolies. However, commercial banks may have other types of relationships with the corporations they lend to, such as providing investment banking services or holding equity in the form of stocks or bonds acquired through the market.

Commercial Banks in the U