Canadian banks looking to expand in the U.S. through acquisitions are facing increased scrutiny from regulators and politicians along with renewed attention on past disputes.
Both TD Bank and BMO are working to close big deals there, TD with a US$13.4 billion deal for southeastern U.S.-focused First Horizon and BMO with a US$16.3 billion deal for California-based Bank of the West.
The Canadian banking industry’s general push south for growth comes after U.S. President Joe Biden issued a broad executive order last year calling for increased economic competition, including through the “revitalization” of merger oversight in the banking industry.
BMO and TD Bank each face public meetings on their proposed deals, a step that’s not required by regulators but that the U.S. Office of the Comptroller of the Currency announced in May will apply to these deals. It also extended the public comment period for both deals.
The public hearings came after a speech by OCC acting head Michael Hsu saying “the time is ripe to rethink the frameworks used to analyze bank merger applications.”
While there’s little to suggest the changing regulatory climate prevent the deals from going through, the shift risks creating delays and has increased the attention on those trying to make them, as well as providing fodder for…
