The Deal: Banks Return to M&A
NEW YORK (TheStreet) -- Deal activity in the American banking sector is at its highest level in nearly three years, a stark contrast to the global scene, where sector M&A has hit lows not seen since the credit crisis.
For the year to date, there have been 274 bank deals in the U.S., a lift on the prior two years and on par with deal numbers for 2010, according to Dealogic. Globally, bank M&A, at 704 deals for the year to date, is at its lowest level since 2008, when 694 deals were struck.
A stricter regulatory and sluggish economic backdrop has challenged all banks, though U.S. institutions overhauled balance sheets and purged themselves of toxic assets more quickly than their European peers.
"A lot of
While the number of U.S. deals is up, total deal value at $10.38 billion is at its lowest point in nearly three years, as regulation makes it difficult to strike large deals. Banks also face more punitive capital and regulatory hurdles if they exceed certain size thresholds, prompting them to carefully weigh the merits of a deal.
The largest U.S. bank deal for the year to date is PacWest Bancorp's
Deal values during the credit crisis were skewed by transformative survival deals such as Bank of America's