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\n After years of drought, dealmaking is returning to the U.S. banking sector. Wells Fargo analyst Mike Mayo recently provided insights into which firms might be the next targets for acquisition. Mayo, a highly regarded figure in the banking analysis community, noted that the current landscape resembles the 1990s, a time when consolidation swept through regional […]<\/p>\n","protected":false},"author":1,"featured_media":2413,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[28],"tags":[],"class_list":["post-2412","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investing"],"_links":{"self":[{"href":"https:\/\/igorsplayground.com\/appcheckr\/wp-json\/wp\/v2\/posts\/2412","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/igorsplayground.com\/appcheckr\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/igorsplayground.com\/appcheckr\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/igorsplayground.com\/appcheckr\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/igorsplayground.com\/appcheckr\/wp-json\/wp\/v2\/comments?post=2412"}],"version-history":[{"count":0,"href":"https:\/\/igorsplayground.com\/appcheckr\/wp-json\/wp\/v2\/posts\/2412\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/igorsplayground.com\/appcheckr\/wp-json\/wp\/v2\/media\/2413"}],"wp:attachment":[{"href":"https:\/\/igorsplayground.com\/appcheckr\/wp-json\/wp\/v2\/media?parent=2412"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/igorsplayground.com\/appcheckr\/wp-json\/wp\/v2\/categories?post=2412"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/igorsplayground.com\/appcheckr\/wp-json\/wp\/v2\/tags?post=2412"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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\n After years of drought, dealmaking is returning to the U.S. banking sector. Wells Fargo analyst Mike Mayo recently provided insights into which firms might be the next targets for acquisition. Mayo, a highly regarded figure in the banking analysis community, noted that the current landscape resembles the 1990s, a time when consolidation swept through regional and community banks following significant regulatory relief.
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“I lived and worked through that period,” Mayo stated during an appearance on CNBC’s “Power Lunch” on Monday. “It starts a little bit, and other people look at it, but it creates a domino effect. Merger Monday is back for banks. Look out for the next 12 months; we should see a lot more mergers. This is the period of the greatest deregulation in three decades.”
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On the same day, Fifth Third Bancorp announced its plans to acquire Comerica in an all-stock deal valued at $10.9 billion. This marks one of the largest regional bank combinations in recent years, and Mayo had anticipated this move. In fact, he included Comerica in Wells Fargo’s takeover basket\u2014a list of potential M&A candidates compiled by his team\u2014just six weeks prior to the announcement.
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As the head of U.S. large-cap bank research at Wells Fargo Securities, Mayo emphasized that the current regulatory environment is becoming increasingly favorable for mergers. “You can dream the dream in this deregulatory environment. This is a more pro-bank, pro-business regulatory environment, the most we’ve had in some time,” he remarked.
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“I think today’s merger is evidence that Goliath’s winning in banking. Scale is more important than ever before, and that’s for distribution, brand, technology, and to compete with the biggest banks.”
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Mayo pointed out that midcap banks are particularly attractive for mergers, as they are more digestible for larger firms. Other names in his takeover basket include Bank of California, BankUnited, and First Horizon\u2014all midsized banks that could catch the eye of larger acquirers seeking scale and efficiency.
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