It looks like Wachovia is in talks with Citigroup about a possible merger,  while also talking to Wells Fargo and Spain's Banco Santander.  With all the consolidation occurring, is it possible the danger posed by the crdit crisis could substantially heal itself?  After all, banks in a strong financial position are buying banks in a weaker position at a major discount.  In the short run, this could end up improving the situation.

     In the long run, there could be problems.  With all this consolidation seemingly happening in the blink of an eye, are some of these banks becoming too big?  Will the possibility of a failure in the future cause even more damage because of the financial behemoths that are being created?  We need to keep an eye on this as it develops.


http://dealbook.blogs.nytimes.com/2008/09/26/wachovia-begins-early-deal-talks-with-citi/index.html?hp