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Question
The following three FIs dominate a local market and their total assets are given below.
Under the 1982 guidelines, would the Fed approve the merger of Banks A and B?
A. It is likely to approve because it is not a concentrated market.
B. It is unlikely to approve because the post-merger HHI has increased by over 100.
C. It is likely to approve because the post-merger HHI has increased by over 100.
D. Likely to approve because the post-merger HHI has increased by less than 5,000.
E. It is unlikely to approve because the post-merger HHI has increased by an amount over 5,000.
Answer
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