Wells Fargo and Citigroup have room to buy a big bank. These 5 regionals fit the bill
Citigroup and Wells Fargo have room to buy a big regional bank as regulators have opened the door to megadeals. Five regional banks make sense as targets.
TL;DR
- Regulatory changes under the Trump administration have eased restrictions, allowing large banks to consider significant mergers.
- Citigroup and Wells Fargo are the only two megabanks positioned to acquire substantial regional lenders due to deposit cap limitations.
- Five regional banks—Fifth Third, Huntington, Citizens, KeyCorp, and Regions—are identified as strong acquisition targets for either Wells Fargo or Citigroup.
- Zions is a potential target for Wells Fargo, while First Horizon is considered for Citigroup.
- Despite favorable conditions, widespread consolidation has been slow, as profitable banks are hesitant to sell.
- Consolidation among regional banks is expected to create new megabanks and reduce the overall number of regional players by 2030.