Capital calls: US bank mergers


[ad_1]

A Wall Street sign is pictured outside the New York Stock Exchange amid the coronavirus disease (COVID-19) pandemic in the Manhattan neighborhood of New York City, New York, the United States on April 16 2021. REUTERS / Carlo Allegri

Concise information on global finance.

———————————————–

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)

On Twitter http://twitter.com/breakingviews

Earlier in capital calls:

Nestlé takes vitamin pills read more

When the rebranding turns into Abrdn find out more

Westpac stumbles to the true north Read more

The $ 2 trln toybox Find out more

Polish gaming giant presses investor buttons Read more

Reuters Breakingviews is the world’s leading source for financial agenda-setting information. As the Reuters brand for financial commentary, we dissect big business and economic stories as they spread around the world every day. A global team of around 30 correspondents in New York, London, Hong Kong and other major cities provide real-time expert analysis.

Sign up for a free trial of our full service at https://www.breakingviews.com/trial and follow us on Twitter @Breakingviews and to www.breakingviews.com. All opinions expressed are those of the authors.



[ad_2]

About Opal Jones

Check Also

The collapse of a building kills 3 in the Egyptian capital | app

CAIRO (AP) — A building collapsed in a neighborhood of the Egyptian capital of Cairo …

Leave a Reply

Your email address will not be published.