Despite regional bank valuations being at all-time lows, the National City deal shows that buyers want even lower prices due to continued worries over the potential landmines on balance sheets. And the U.S. Treasury’s bailout plan may also be playing in a role in further belowmarket deals.
“Most of the take-under deals are being arranged with the regulating agencies,” said Charlene Davidson, Senior Managing Director at McGladrey Capital Markets. “Until regulators are more comfortable that the situation has been stabilized, they will push more banks to take these deals.”
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