Stress tests an opportunity for investment bankers?
The results of the stress tests are in, and bankers are poring over the details. The weak U.S. banks are, "eagerly looking for deal opportunities," reports the Financial Times. The overall results suggest strength, but some think the weak banks are prime pickings for the relatively few strong banks.
JPMorgan Chase continues to be the most rumored player. The FT notes a few other possibilities: A merger between Banc Corp and KeyCorp, which has a $1.8 billion deficit, and a takeover of Regions, which needs $2.5 billion in capital, by PNC. Whether any of this will come to pass is anyone's guess. Another possibility might be asset sales by the big banks. Bank of America has a several assets that might be on the block, most notable is its Columbia asset management unit and First Republic. Citigroup might also be in the market. Anything to keep the government's common stake to a minimum, right?
For more:
- here's the article
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