Halister News

(Bloomberg) -- President Donald Trump’s picks to head banking agencies (OCC, FDIC, Fed) will probably allow bank mergers to close even if there are pending Bank Secrecy Act/Anti-Money Laundering (BSA/AML) issues, likely encouraging more bank M&A, which may boost regional banks, Cowen’s Jaret Seiberg writes in note.

• Sees BSA/AML compliance as biggest obstacle to bank M&A, with fixes for problems delaying deals; cites M&T’s troubles as example of "growing problem" administration may be able to address
• Probably won’t benefit mega banks, as they’re large enough to be unlikely to win regulatory approval for acquisitions regardless of BSA/AML issues
• KBW regional bank index (KRX) up as much as 1% while KBW banks (BKX) gains as much as 0.4%, S&P 500 falls as much as 0.1%
• NOTE: FDIC’s Thomas Hoenig, OCC’s Thomas Curry among those scheduled to speak at Institute of International Bankers’ annual Washington conf. today
• Related:
  • Earlier, IBKC, PFBC, RF, ZION Among Banks Poised to Gain From Rate Hike

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 Steven Fromm