M&T to buy Provident for about $400 million in stock

Reuters ^ | 2008-12-19 | Juan Lagorio

[rabscuttle385]

NEW YORK (Reuters) - M&T Bank Corp (MTB.N) said on Friday it agreed to buy Provident Bankshares Corp (PBKS.O) in an all-stock deal valued at around $400 million in an effort to expand its branch network in the U.S. mid-Atlantic region.

Provident Bankshares, based in Baltimore, is the second major bank in Maryland to agree to sell itself this month.

U.S. banks are broadly looking to expand their branch networks to boost their reliance on stable funding from deposits as borrowing in debt markets becomes increasingly expensive and unreliable.

[rabscuttle385]

Just after Capital One bought out Chevy Chase...

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*Ping!*

[rabscuttle385]

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[Grim]

This is what banks are doing with bailout money, instead of lending to strapped small business and homeowners.

[PAR35]

This is what banks are doing with bailout money

Except they don't appear to be using their TARP money. They are just issuing stock. If it's new stock, it may dilute the taxpayer's recent investment in them.

[SierraWasp]

So... Empty Bank (MTB) is buying out Prove-a-dent with Empty shares to avoid getting under a TARP until this storm is over??? WasssssssssssUP???

Here! Have some X-mas cheer!!! Phhhhhhhhhhhht!!!

[dennisw]

This is what banks are doing with bailout money

Except they don't appear to be using their TARP money. They are just issuing stock. If it's new stock, it may dilute the taxpayer's recent investment in them.

Probably right but TARP activity is kept hidden. Recipient banks and dictator Henry Paulson say very little about what is going on and no party is obligated to say where taxpayer money is going and what it is used for

Banks are holding onto money because they don't trust borrowers like you and me
But they do trust lending to the USG
So lots of banks are turning around and investing TARP money in Treasuries
Yippee the US government can fund 0bama's socialist schemes with this money

The rush into Treasuries is making Washington DC socialists and central planers very happy
Just wait until we get the first wave of African style socialism from 0bama
When is Hillary's (Secretary of State) first trip to Africa?
My bet is in year 2009 maybe early 2010 and Kenya will be on the itinerary

[Jimmy Valentine]

Lots of duplication in the Baltimore area between M&T and Provident.

Going to be a lot of Provident people looking for work in January.

[pointsal]

If it's new stock, it may dilute the taxpayer's recent investment in them.

Dilution...Wow! That's an interesting gambit. Once again, the slick lawyers win!

[Tolerance Sucks Rocks]

Maryland “Freak State” PING!