Banks Push for Scale as They Take on Tech


In 2019, RBC Capital Markets acted as sole financial advisor to BB&T in its $72 billion merger of equals with SunTrust. It was the largest financial institutions transaction since the crisis and the largest U.S. bank merger since 2004. Since then, larger M&A deals have been few and far between given recent market volatility, but how will lower valuations and the push for more scale impact the banking landscape in the future?

Two of the BB&T-SunTrust deal advisors, Vinnie Badinehal and Rodgin Cohen, discuss the motivations for bank expansion on S&P Global Market Intelligence’s “The Big Deal” podcast.

On the episode, Badinehal and Cohen discuss:

The push for scale in bank deals (at 4:05)
Whether the industry will see another BB&T/SunTrust-sized deal (at 7:14)
The election and how it could impact bank M&A (at 9:28)
The depository merger-of-equal trend (at 11:57)
The optimal size of public banks and the survive-ability of community banks (at 13:40)
Big tech's impact on the banking landscape (at 18:40)

 

 
"As technology becomes more critical, scale has become even more important."

- Vinne Badinehal

"Competition should not be decided by laxity in regulation."

- Rodgin Cohen

Published April 9, 2020

The Big Deal Podcast


Financial InstitutionsM&AMerger of EqualsScaleTechnology

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