Fifth Third to Buy Comerica in $10.9 Billion Stock Deal

Watch Fifth Third to Buy Comerica in $10.9 Billion Stock Deal - Bloomberg on Dailymotion

Transcript

00:00Herman, you've been talking about it for years. We've been having that conversation with you.

00:03It's coming. It's coming. These guys are going to get together. Here it is.

00:07How widely expected was this particular tie-up?

00:09Yeah, so this deal actually reinforces the fact that larger Midwest regional banks are expanding

00:16into higher-growth markets. You've seen this with PNC in the first bank transaction.

00:20You've seen this with Huntington in Ohio expanding into Texas with Veritex.

00:24And this is a continuation of that, Fifth Third, based in Cincinnati, going into California and Texas.

00:32Comerica has been rumored to be on the market to sell itself over the past several quarters,

00:38considering the fact that some of its position with its interest rates hasn't been the best positioned.

00:45And so there's been a lot of scutterbott in terms of activist investors pushing Comerica for a sale.

00:51Herman, based on what we've heard, there's more to come.

00:54What kind of banks, which banks, are you focused on now, given the track record of the year so far?

00:58Yeah, I guess the question is squarely, what's next for a bank like KeyCorp that's also based in Ohio in the Midwest?

01:06You've seen its rivals in Ohio expanding.

01:09And so the question, I think, on the next three-key earnings call is how welcome are they for a potential transaction going forward?