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January 11th, 2008

Bank M&A Heats Up Amid Subprime Fallout

“These investments dilute shares and make them less valuable”

The bank branch on the corner might be changing names again. Get set for the next wave of consolidation that could sweep through the nation’s banking industry this year. Chief executives at some of the top regional players might be mulling deals to salvage businesses pummeled by the subprime mortgage market’s collapse.

Banks like the West Coast’s Washington Mutual Corp., the Midwest’s National City Corp., and the Southeast’s SunTrust Corp. are among those considered takeover targets because of depressed stock prices and credit uncertainties. Larger financial institutions might use this weakness to expand geographically and gobble up deposits along the way. More Technorati Tags via Yahoo:
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