Banking M&A Likely to Decline in 2008

Analysts See M&A Volume Among Banks to Decline in 2008 Amid Credit Concerns

January 15 - Associated Press - Fewer buyers and uncertainty surrounding credit markets will likely lead to a decline in bank consolidation in 2008, analysts said.

"There will very likely be a decline in deal activity simply because banks have fairly significant credit concerns," Keefe, Bruyette & Woods Inc. analyst Robert Hughes said. Banks are struggling to understand their own credit issues, so they are unlikely to take others as well, Hughes said in an interview.

A smaller number of bank chief executives believe merger and acquisition activity will increase in 2008 compared with 2007, according to a UBS study. Read More.