Halister News

(Bloomberg) -- Fed’s raising its threshold for when deals are exempt from systemic risk review is bullish for small bank M&A, Cowen’s Jaret Seiberg writes in note. However, Bank Secrecy Act/Anti-Money Laundering (BSA/AML) compliance, consumer enforcement remain obstacles.

• Cites Fed’s order in People’s United Financials merger with Suffolk Bancorp, which eliminates need for systemic risk analysis if resulting bank has
• Compass Point’s Isaac Boltansky writes Fed’s shift lifts a hurdle in regional, community bank M&A process, signaling regulatory environment for consolidation is improving
  • BSA/AML reviews still present obstacles, though there’s growing effort to streamline BSA; cites The Clearing House (TCH) report highlighting problems with BSA/AML regime, BNA story suggesting Rep. Blaine Luetkemeyer (R-MO) will review BSA
  • Any softening should be viewed as positive for bank M&A
• KBW’s Brian Gardner writes this type of change may be the kind of easing banks are likely to see as Trump administration fills positions at regulatory agencies
  • Regulators may use discretion to alter supervisory regimes, while changes to existing rules, which would require formal notice, comments procedures, may be less common than some investors expect
• Related:
  • March 16, Fed approves PBCT, SCNB deal
  • March 13, Trump Team May Encourage Bank M&A by Easing Compliance: Cowen

To contact the reporter on this story: Felice Maranz in New York at fmaranz@bloomberg.net To contact the editors responsible for this story: Arie Shapira at ashapira3@bloomberg.net Will Daley