Posted on 10/20/2025 1:04:57 PM PDT by E. Pluribus Unum
Summary
NEW YORK, Oct 20 (Reuters) - Jitters around U.S. banks' exposure to loan losses have fueled expectations for more mergers and acquisitions as big buyers may be spurred to look to absorb smaller or weaker rivals, according to four senior industry sources.
More than two years after the sudden failure of Silicon Valley Bank that destabilized the industry, auto company collapses and bad loans have hurt bank stocks in recent weeks and sparked concerns that more pain is on the horizon. The U.S. KBW Regional Banking Index KRX sank more than 6% on Thursday before recovering some ground on Friday. It has fallen almost 5% this year.
"Stock market activity and valuations have always driven M&A conversations, so it is possible that the current market movements could speed up those conversations," said Dan Hartman, a lawyer at Nutter, adding banks were already open to M&A because of the Trump administration's friendlier stance toward deals.
"The bigger the banks get, the better prepared they can be in a situation to absorb significant credit losses."
The latest scare came on Thursday when Zions Bancorporation, opens new tab(ZION.O), opens new tab
disclosed losses tied to two commercial and industrial loans and Western Alliance (WAL.N), opens new tab
said it had initiated a lawsuit alleging fraud by Cantor Group V, LLC, sending broader banking shares lower. It followed bankruptcies of First Brands and Tricolor in the auto industry, which sent ripples through credit markets in recent weeks and cast a spotlight on the exposure of some of the world's biggest...
(Excerpt) Read more at reuters.com ...
Tricolor’s bankruptcy last month is because its main target market is facing a deportation problem.
Maybe, so, but also, they were using the same collateral for a multitude of lenders. Something that lenders tend to frown upon.
Tracking the Regional banks shows huge losses ahead. My report shows a dozen in stress, ( -3 to 8 percent)Truist a surprise, looks like this banking crisis could be warming up.
......forgot, Credit Unions so far in the green, the place to be right now.The majors (Morgan, BA, Goldman, etc) with all their $$$ billions paper shorts in Silver could hopefully cost them billions....looking forward to a healthy dose of “ Justice”.
* Eyes on the Regionals, “ Contagion” always starts with the Regionals....for those concerned, look up the term “ Bank Bail in”. The first was a regional in Oklahoma half a year ago.
Prepare according, it costs nothing, better to be six months early, than one minute late.
“Maybe, so, but also, they were using the same collateral for a multitude of lenders. Something that lenders tend to frown upon.”
indeed ... and it’s called fraud ...
Can I claim that my mom is my wife to get a better rate?
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