Davis Polk partner and Financial Institutions practice head Margaret Tahyar was quoted in Reuters discussing bank merger regulations. The piece notes that deals involving banks either in receivership or under stress rose to $23.2 billion in the first quarter to the highest since 2019, compared to $3.9 billion in bank deals for non-stressed institutions, the lowest seen over the first half of a year since 2010.

“We have an unhealthy environment for regional bank mergers,” said Margaret, citing the slow pace of deal approvals in recent years. “Instead of evaluating mergers based on competition and the needs of the community, political factors have become too important,” she said. “There is also too much uncertainty about regulatory changes that will impact pricing.”

“US bank mergers frozen by capital rules, regulatory uncertainty,” Reuters (July 17, 2023)

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