Mergers with anticompetitive effects cannot go unchallenged by federal authorities unless the banks can show that the combined bank would have significant public benefits.

Question

Quizplus · Accepted Answer

This statement is consistent with the guidelines set forth by the Antitrust Division of the Department of Justice and the Federal Trade Commission for evaluating the potential anticompetitive effects of mergers and acquisitions. Under these guidelines, mergers that are likely to substantially lessen competition are subject to scrutiny and may be challenged by federal authorities, unless the merging parties can demonstrate that the merger would result in significant public benefits that outweigh any potential harm to competition.

Mergers with Anticompetitive Effects Cannot Go Unchallenged by Federal Authorities