U.S. Business: Settling an Account

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Struck Down. The trustbusters hold the upper hand. In decisions that set the precedent for Judge MacMahon's ruling, the Supreme Court ruled in 1963 that the proposed merger of two Philadelphia banks was illegal, and last year it struck down a Lexington (Ky.) bank merger. If the Supreme Court continues in this pattern, more federal judges may be emboldened to back the trustbusters' complaints in the lower courts. The Justice Department is now arguing suits against Milwaukee and Chicago bank mergers, is expected to file another against a San Francisco bank. It is also watching other mergers that it feels might lessen competition among banks, which it ranks as "perhaps more vital than in any other area."