Better than a merger

In the past, when crises hit the US banking industry, regulators often nudged bigger institutions to swallow weaker ones. These so-called supervisory acquisitions helped spread capital across the financial system. But fresh from its Bear Stearns foray, JPMorgan wasn’t aggressive enough to nab Washington Mutual, leaving TPG to lead a group recapitalising the troubled thrift. That suggests there may be a new dynamic at work – one regulators need to consider. You’d think JPMorgan chief executive Ja...