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Smaller Banks and Bailout Funds

I am wondering if the smaller banks who are not receiving bailout funds are worried that it will weaken their financial position so that the bigger banks find them more vulnerable to buyouts and takeovers?


Certainly this is a broad question, but many community banks are opting not to accept government funds because they are strong, they didn't participate in subprime mortgages and simply don't have a need for the money. By not accepting these monies that they don't need, there is more for the banks that do need it. The acceptance or refusal of bailout money has little to do with strong banks being taken over or acquired.

Published on BankingQuestions.com 12/09/08