Deals
Bank M&A in U.S. Set to Slow From Fastest Pace Since 2007
- ‘Eventually economics will win out,’ analyst Mike Mayo says
- Democratic lawmakers, White House have soured on consolidation
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U.S. banks, which have been combining at levels not seen since before the global financial crisis, are now facing the near-term hurdles of stalled approvals and mounting opposition from Democrats in Washington. All of that is unlikely to keep the string of deals from ultimately continuing, according to analysts.
Regional lenders “may tap the brakes” in their merger-and-acquisition activity until there’s more clarity from regulators, Bloomberg Intelligence analysts Herman Chan and Rujuta Desai said in a report this month. Still, anemic loan growth and competition from larger or more technologically savvy rivals are likely to force banks to keep seeking out combinations even amid the obstacles.