Many lenders are establishing a firm bottom on variable interest rates amid intense competition for commercial credits, rising deposit costs and the possibility that the Fed could take rates to unprecedented lows.
Toronto-Dominion Bank would end up with a smaller stake in a larger brokerage if Schwab and TD Ameritrade combined. But it could parlay that stake into funds for a U.S. bank acquisition.
The smooth and relatively short process should be encouraging to other big banks that are eyeing deals. But their window of opportunity may not last long.
The regulators approved the deal after nine months of consideration, but the Fed hit SunTrust with a consent order tied to "unfair and deceptive" business practices from 2013 to 2017.
The Louisiana company's willingness to combine with First Horizon without a big initial payday is fueling talk that other banks could be keen on selling at relatively inexpensive prices.
If the no-premium agreement announced by First Horizon and Iberiabank this week is a sign that sellers’ asking prices will come down, then Regions might reconsider its anti-M&A stance, a company executive said.
While layoffs at big banks get the headlines, small and midsize lenders are also trimming payrolls in response to lower rates and fears that a recession is getting closer.
