r/WallStreetbetsELITE
TIL the US banking rulebook essentially limits who can buy regional banks to two names right now
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**TL;DR: We'll probably get worse mortgage rates and higher banking fees because JPMorgan and BofA are looking to buy a bunch of regional banks** Under US banking rules, any bank that controls more than 10% of all national deposits is prohibited from making major acquisitions. JPMorgan and Bank of America are both over that line. Wells Fargo and Citi are not. 5 regional banks are targets: Fifth Third, Huntington, Citizens Financial, KeyCorp, and Regions Financial keep coming up in analyst conversations, all hold $100 billion or more in assets. Regulators are wayyy more lenient on these deals than they were 5 years ago so prob going to go through Stock prices are up and earnings are solid, so nobody selling cheap right now, but analysts still think the number of major regional banks to fall from 49 to around 30 by 2030