Small banks are doing some really huge deals
Post# of 5789
Posted On: 11/24/2014 9:36:51 AM
Small banks are doing some really huge deals
While big banks have shied away from making major takeover deals since the dark days of the financial crisis, smaller banks have stepped into the void in a monumental way.
In a post-crisis mergers-and-acquisitions frenzy, some lesser-known institutions have increased assets by 7,000 percent or more. They've used a combination of regulatory benefits, strong flows of private investor money and government help to gobble up scores of smaller institutions.
Industry experts say the trend likely will continue even if the pricing isn't quite as friendly as it used to be, presenting opportunities for retail investors to dabble into a space they often avoid.
"The smaller banks have a lot more capital per dollar of assets than the big guys do. They also tend to be more effective at managing credit risks," Christopher Whalen, senior managing director at Kroll Bond Rating Agency, said in an interview. "There's a lot of great stories out there..............
http://www.cnbc.com/id/102170284
While big banks have shied away from making major takeover deals since the dark days of the financial crisis, smaller banks have stepped into the void in a monumental way.
In a post-crisis mergers-and-acquisitions frenzy, some lesser-known institutions have increased assets by 7,000 percent or more. They've used a combination of regulatory benefits, strong flows of private investor money and government help to gobble up scores of smaller institutions.
Industry experts say the trend likely will continue even if the pricing isn't quite as friendly as it used to be, presenting opportunities for retail investors to dabble into a space they often avoid.
"The smaller banks have a lot more capital per dollar of assets than the big guys do. They also tend to be more effective at managing credit risks," Christopher Whalen, senior managing director at Kroll Bond Rating Agency, said in an interview. "There's a lot of great stories out there..............
http://www.cnbc.com/id/102170284
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