Credit Sussie Suggests that a Canadian Bank to Buy Regions Financial
Regions Financial (RF) hasn't had a huge reaction to such speculation because it's been a common myth so far that the regional banks would be buyout targets. So far nothing has happened in this sector so the market has been lulled to sleep. Likely on the new financial regulation in the US not to mention Basel III has limited the desire of banks to go on acquisition sprees. This might change in the near future so the speculation by Credit Sussie is likely logical. After all the Canadian Banks such as Toronto Dominion (TD) and Bank of Montreal (BMO) are relatively strong and would likely relish the opportunity to buy an American bank on the cheap. The price is likely a sticking point. Canadian Banks aren't likely to pay up and regional banks such as RF won't part with shares on the cheap. RF currently trades anywhere from 20-50% below book value depending on what number you use. Are Canadian Banks willing to pay a multiple of BV? The analyst mentions the option of me...