RBC: US Banks Need More Consolidation

By MIKE BAKER

RALEIGH, N.C. (AP) — A Royal Bank of Canada executive who oversees the company's international operations, including its U.S. banking operations based in North Carolina, said Wednesday the U.S. financial industry needs more consolidation.

But he warned that acquisitions have been complicated by the government's ongoing effort to keep banks afloat.

Jim Westlake, who guides the company's work outside of Canada, said the Troubled Asset Relief Program, which has provided billions of dollars to domestic banks, has been a "made-in-U.S. solution." He said it would be prudent for the government to allow well-capitalized foreign banks to participate more in the market. ...