Here are some major deals that could make sense.
Bloomberg News reports that eight years after the financial crisis, bank bailouts are being discussed once again in Europe. Low and even negative interest rates, the weight of soured assets, high legal bills and new digital competitors are all depressing shares and executives. Britain’s decision to leave the European Union has further undermined confidence in the banking sector.
With another potential crisis looming and political uncertainty throughout Europe, large cross-border bank deals have perhaps never been as unlikely. But that doesn’t mean they wouldn’t help.
In nearly every other industry, the combination of stagnant growth, distressed valuations and need for consolidation would lead to a raft of mergers and acquisitions. In finance, disastrous bank combinations and bailouts of too-big-to-fail firms are fresh in regulators’ minds.
Based on discussions with more than a dozen merger advisers, as well as analysts and investors, here are some major deals that could make sense - if they were allowed to happen:
Barclays buys Deutsche Bank
Santander buys Deutsche Bank
JPMorgan buys Standard Chartered
ICBC buys Standard Chartered
Societe Generale buys UniCredit
Wells Fargo buys Credit Suisse
Hit the link below to access the complete Bloomberg News article: