This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Bank M&A Complicated by Failures

But Kevin Mukri, a spokesman for the Office of the Comptroller of the Currency, which regulates national banks, says the regulator's standards haven't changed as a result of the crisis.

"We haven't tightened or loosened any of the standards," Mukri says, adding that in terms of time lapses between deal announcements and closings, "we're pretty quick on it," so long as the OCC is able to verify the capital requirements needed.

The OCC also encourages interested parties looking to start or buy a bank to undertake a discussion with the regulator beforehand to give a sort of heads up, he adds.

"We have not seen any inordinate delays on our end in approving ... on proposed deals," says William Ruberry, a spokesman for the Office of Thrift Supervision. "What we have seen is that there are fewer applications that have come our way," especially for new institutions.

A spokesman for the FDIC did not immediately comment.

In the case of Sterling, the lack of quick regulatory approval ended up being a blessing in disguise, analysts say.

Oppenheimer analyst Terry McEvoy notes that Sterling's credit quality deteriorated since it announced the deal and that it had to restate third-quarter results in November, which clearly put pressure on its capital levels, he says.

Analysts were concerned that Sterling would have had to raise common equity in order to get the deal done, despite successfully repurchasing preferred stock owned by the U.S. government last year, which may or may not have been received well after Bank of America (BAC - Get Report), Wells Fargo (WFC - Get Report) and Citigroup (C - Get Report) each completed large common equity offerings in late 2009.
5 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
BAC $15.58 -4.65%
C $50.94 -4.75%
FCVA $4.82 0.84%
OCFC $17.90 -2.82%
WFC $50.99 -4.39%

Markets

Chart of I:DJI
DOW 16,058.35 -469.68 -2.84%
S&P 500 1,913.85 -58.33 -2.96%
NASDAQ 4,636.1050 -140.4030 -2.94%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs