Smaller Banks Ripe for the Buying

Dragged down by the general malaise gripping the financial sector, some healthier regional banks are emerging as attractive acquisition targets.

Regional bank stocks have been pummeled along with the rest of the financial sector over the past year, as hedge funds short names across the board. As a result, the valuations of some extremely well-run banks have been pushed down to bargain basement prices, creating new interest among possible buyers.

"Between now and the end of the year, expect to see things happen," says Chris Whalen of Institutional Risk Analytics, a firm that is evaluating several banks for potential acquirers. "The value is compelling, if you can afford to wait." ...