Small banks to be gobbled up
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Source: Des Moines Register
Were expecting a more robust M&A environment because the haves and have-nots have been decided, said Eric Lohmeier, managing director of Des Moines-based NCP Inc., an investment banking boutique that specializes in mergers and acquisitions.
Jim Chessen, chief economist of the American Bankers Association, said the irony of this years merger and acquisition market is that small bank owners are being forced to sell by regulations meant for larger banks. Some of the tactics big banks employed in the pursuit of profit growth just dont work in rural America, where one dissatisfied customer can have a much larger impact on a banks reputation than in heavily populated urban areas.
We have seen an avalanche of new regulations on the banking industry the past several years, and while the impression was that the legislation was targeted at the largest institutions, the fact is that its had a widespread impact on the smallest banks in the country, Chessen said. Theres going to be more interest in finding merger partners because you need to be bigger to manage the compliance burden.
Read more: http://www.desmoinesregister.com/article/20130127/BUSINESS/301270017/Small-banks-to-be-gobbled-up?Frontpage
Are regulations to blame for this??
Angry Dragon
(36,693 posts)KansDem
(28,498 posts)TexasTowelie
(112,417 posts)Marx on the Fate of Capitalism
http://convozine.com/2794-joshua-evans/12024
cstanleytech
(26,319 posts)people.
Doesnt matter if its capitalism, socialism or whatever ism you want to call it because people are the ones who in the end are at fault.
OKNancy
(41,832 posts)This is an analysis/commentary. COuld you please re-post in GE or Good Reads? Thanks