Lot of chatter about WF being in a good position to buy Regions. They have a strong presence that potentially links WF networks in TX with what we have in the SE, but also a strong presence in TN and other states where WF has little. Could be a good move. Not sure the current group of executives is capable of pulling it off though. Thoughts?
(For 'what does this have to do with layoffs?!' guy, we all know that post merger there's a good amount of layoffs to eliminate duplication/overlap)
Be real - while WF technology and business apps aren't perfect, they're years ahead of where Regions is at. It would be challenging however for WF to execute/manage a merger of this scale.
We're below 10%, which is why MA is in the table.
@n6 better still, try your hamd at googling "what is Wells fargo share of insured deposits relative to 10% cap"
@vd No, its a Federal law. it prevents a bank going above 10% through mergers and acquisitions, but not through organic growth.
Also, I believe Wells is above the 10% cap now so M&A is out of the question.
@q8 Didn't the 10% deposits cap get removed.
You might be right, but again, Shart has publicly stated that he's open to the idea. Not necessarily related to Regions, but there are only so many desirable possibilities here. The bank has to be large enough to be worth the effort, but not so large that they get WF close to the 10% deposits cap. Theres also geographic market considerations. Only 2-3 banks across the nation check all those boxes. I'm not saying it's going to happen, but it is on the realm of possibility. Shart is incapable of growing a bank organically, so this could also be a way for him to "but the growth" they investors are looking for and send his own shares higher.
"chatter" is just someone trying to sound like a big boy businessman
@n6 Right up there in credibility with NFL trade rumors near the draft deadline- Mostly rumors floated by the agents themselves, concern-trolling their way to earning their fees.
Have you googled this? There's actually a good amount of chatter about it, and Shart has publicly said he's open to M&A. Regions is strong in states where WF is weak. It's not the craziest idea. We have a pretty strong network in the West, mountain states and down to Texas, then sort of a void until Georgia. Regions could fill that.
@a6 Stifel would be an interesting move with WFA just down the road.
But Stifel is an example of the shortsightedness of Bob Bagby. AGE was much larger than Stifel and certainly could have gone on their own like Stifel and EDJ.
There is literally near zero chatter on this. Makes no sense on many levels
When you buy a bank you are buying a deposit (customer) base, asset/loan relationships, wealth/investment clients, and M&A deal flow. The brick and mortar "locations" stuff is a cost to be sloughed off like dead skin, along with most of the systems and staff. I dont see how Regions adds any value unless they have some big oil & gas commercial customers.
The way things are going, wait long enough and Regions will buy us.
All good marraiges require common ground. From Wikipedia:
"April 2015, Regions was fined $7.5 million by the Consumer Financial Protection Bureau (CFPB) for charging consumers with inappropriate or illegal overdraft fees.[37] Regions did not obtain affirmative opt-ins from charging overdraft fees on ATM and point of sale transactions.[38] The CFPB also found that Regions misrepresented overdraft and non-sufficient fund fees related to the bank's short-term loan program.
On September 28, 2022, the CFPB again ordered Regions Bank to pay $50 million into the CFPB’s victims relief fund and to refund at least $141 million to customers harmed by its illegal surprise overdraft fees, labeling the bank a "repeat offender." From August 2018 through July 2021, Regions charged customers surprise overdraft fees on certain ATM withdrawals and debit card purchases. The bank charged overdraft fees even after telling consumers they had sufficient funds at the time of the transactions. The CFPB also found that Regions leadership knew about and could have discontinued its surprise overdraft fee practices years earlier, but they chose to wait while Regions pursued changes that would generate new fee revenue to make up for ending the illegal fees."
Divesture of some of the branches in certain states would be required as part of the approval, but guess who that would benefit? Sharts old buddies at JPM. In his minds, that's not at all the downside one might think it is.
I dont see regulators allowing a merger.
Will be hilarious explaining the micromanaging to 8.00 hours in the chair, forced negative performance rating, stack ranking, and soon-to-be 5 days in office. Welcome to H3LL, Regions peeps!
i feel really sorry for the Regions employees. Anyone that makes it across to this side is going to HAAAATE working here. Guaranteed
We need to do something bigger like this. I'll add maybe Stifel? Or a self directed brokerage like when Morgan Stanley bought eTrade.
It'll only happen if Charlie can severely overpay for them. That dude loves spending money on vanity projects.