Investing. How Closely Are The Banks And Investment Firms Tied Together In Unidentified Ways?

Investing : How Closely Are The Banks And Investment Firms Tied Together In Unidentified Ways

How many of them have their hands in at least 4% of each other, an amount they would not have to report except as "miscellaneous" or "other"? ~~~ iswaswill ~~~

Best Answer To Investing Question

I understand what you are saying, but the 5% reporting rule is not really the key issue. Historically - say company A bought company B, and company B had at some time acquired a 3% stake in company C. Company A would report that, and most likely sell the position, as it would not be worth the trouble. Also when you say investment firm, that is a bit generic. Are you saying non-bank finance companies, brokerages, investment banks. As for the unidentified, that may be a moot point as so many banks and investment firms have in one way or another merged. Also because bank mergers are more regulated than other mergers that 5% rule does not come into play. Where if medium size restaurant company wanted to buy another medium size restrauant company they may want to acquire % stake hold that, and then announce a tender offer. That same scenario does not really hold for banks, as there are no "hostile" take overs in banking and insurance. agt;

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Answer 1

I understand what you are saying, but the 5% reporting rule is not really the key issue. Historically - say company A bought company B, and company B had at some time acquired a 3% stake in company C. Company A would report that, and most likely sell the position, as it would not be worth the trouble. Also when you say investment firm, that is a bit generic. Are you saying non-bank finance companies, brokerages, investment banks. As for the unidentified, that may be a moot point as so many banks and investment firms have in one way or another merged. Also because bank mergers are more regulated than other mergers that 5% rule does not come into play. Where if medium size restaurant company wanted to buy another medium size restrauant company they may want to acquire % stake hold that, and then announce a tender offer. That same scenario does not really hold for banks, as there are no "hostile" take overs in banking and insurance. agt;