The Federal Reserve approved the first two bank acquisitions
subject to Dodd-Frank’s financial stability
requirement. But the most important message in the
agency’s orders is its warning to more complex
Instead of being heralded as a positive sign for bank M&A,
last month’s approval of Capital
One’s acquisition of ING Direct, which followed
December’s approval of PNC’s purchase
of RBC (USA), has US financial regulatory attorneys concerned
over deals involving the top tier banks.
"I think it’s fair to say that the Federal
Reserve has indicated it is sending a real cautionary note to
large banks seeking more than the most modest acquisitions,"
said Sullivan & Cromwell’s H Rodgin Cohen, who
acted for the seller on both deals.
"And to the banks immediately below them, somewhat of a
cautionary note as to the size to which they will be...