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DEAL COPS. New York Community Bancorp’s (NYCB.N) $ 2.6 billion acquisition Flagstar Bancorp (FBC.N) isn’t usually the kind of deal that gets attention in Washington. But Senate Speaker Sherrod Brown is part of a group of Democrats who want regulators to crack down on consolidation. This gives a break to the multitude of regional banks that have been in M&A mode.
These transactions often make financial sense. Bancorp and Flagstar are among the mid-sized companies that have struggled in a near zero interest rate environment. The combined company, with $ 87 billion in assets, would help them better compete with giants like JPMorgan (JPM.N) or fintechs.
That’s why there was a wave of pullouts after a hiatus from the 2008 financial crisis. Last year, First Citizens BancShares (FCNCA.O) announced a $ 2.2 billion acquisition of CIT Group. (CIT.N) while PNC Financial Services (PNC.N) bought the American activity of BBVA (BBVA.MC) in the United States for 11.6 billion dollars read More.
Last September, the Donald Trump-led Justice Department signaled it may relax bank merger reviews. With Democrats now in the driver’s seat, regional lenders can expect more time under the microscope. (By Gina Chon)
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