Question : 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”?
investment firms

Best answer:

Answer by Gatsby216
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 4.9% 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.
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