Merger talks are under way, but why?
Why are the 2 biggest banks in a country talk about a merge?
One has been in news recently in regards to some massive frauds.
Could this be a way to get past the legal issues? Once merged the 'people' will disappear behind a screen?
Could it be a way to cover losses by insurance companies?
or, most likely it is simply a sign of retraction, an industry in decline.
Many banks are closing branches and reducing costs, all because of the retraction and the need to keep balance sheets looking good for investors. The last thing the banks need is a bank run, but a dumping on the stock market would have the same effect, given banks are not liquid, in fact most are over exposed massively.
Time will tell