Scotiabank Buys Part of KeyCorp. Why Bank Mergers Are Continuing Year After Turmoil. -- Barrons.com

Dow Jones08-12

By Brian Swint

More than a year after several regional banks became unstable amid rising interest rates, the wave of consolidation is continuing.

Bank of Nova Scotia, the Canadian lender, said it would buy a 14.9% stake in KeyCorp for $2.8 billion. KeyCorp, based in Cleveland, Ohio, has about 1,000 branches in 15 states and $187 billion in assets. The agreement follows the Capital One deal to buy Discover Financial for $35.3 billion earlier this year.

For Scotiabank, the deal adds to returns for shareholders and gives them a bigger footprint in North America. For KeyCorp, it's a chance to raise funding on attractive terms, according to a statement from the company.

Mergers can make the financial system more stable if they shore up liquidity. Even though there is much less turmoil in the sector now, the events last year may make banks more cautious about keeping their balance sheets in rude health.

In 2023, Silicon Valley Bank and Signature Bank collapsed in March and First Republic failed in May. Other financial institutions swooped in to pick up the pieces.

Write to Brian Swint at brian.swint@barrons.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

August 12, 2024 09:16 ET (13:16 GMT)

Copyright (c) 2024 Dow Jones & Company, Inc.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2458602130?lang=en_US&edition=fundamental","thumbnail":"","is_english":true,"pubTime":"2024-08-12 20:16","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2458602130","market":"fut","top_or_hot":-1,"title":"Scotiabank Buys Part of KeyCorp. Why Bank Mergers Are Continuing Year After Turmoil. -- Barrons.com","media":"Dow Jones","content":"<font class=\"NormalMinus1\" face=\"Arial\">\n<p>\n  By Brian Swint \n</p>\n<p>\n  More than a year after several regional banks became unstable amid rising interest rates, the wave of consolidation is continuing. \n</p>\n<p>\n     Bank of Nova Scotia, the Canadian lender, said it would buy a 14.9% stake in <a href=\"https://laohu8.com/S/KEY\">KeyCorp</a> for $2.8 billion. KeyCorp, based in Cleveland, Ohio, has about 1,000 branches in 15 states and $187 billion in assets. The agreement follows the Capital One deal to buy Discover Financial for $35.3 billion earlier this year. \n</p>\n<p>\n     For Scotiabank, the deal adds to returns for shareholders and gives them a bigger footprint in North America. For KeyCorp, it's a chance to raise funding on attractive terms, according to a statement from the company. \n</p>\n<p>\n     Mergers can make the financial system more stable if they shore up liquidity. Even though there is much less turmoil in the sector now, the events last year may make banks more cautious about keeping their balance sheets in rude health. \n</p>\n<p>\n     In 2023, Silicon Valley Bank and Signature Bank collapsed in March and First Republic failed in May. Other financial institutions swooped in to pick up the pieces. \n</p>\n<p>\n     Write to Brian Swint at brian.swint@barrons.com \n</p>\n<p>\n     This content was created by Barron's, which is operated by Dow Jones &amp; Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal. \n</p>\n<pre>\n \n</pre>\n<p>\n  (END) Dow Jones Newswires\n</p>\n<p>\n  August 12, 2024 09:16 ET (13:16 GMT)\n</p>\n<p>\n  Copyright (c) 2024 Dow Jones &amp; Company, Inc.\n</p>\n</font>","source":null,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Scotiabank Buys Part of KeyCorp. Why Bank Mergers Are Continuing Year After Turmoil. -- Barrons.com</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nScotiabank Buys Part of KeyCorp. Why Bank Mergers Are Continuing Year After Turmoil. -- Barrons.com\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-08-12 20:16 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://dowjonesnews.com/newdjn/logon.aspx?AL=N><strong>Dow Jones</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>By Brian Swint \n\n\n  More than a year after several regional banks became unstable amid rising interest rates, the wave of consolidation is continuing. \n\n\n     Bank of Nova Scotia, the Canadian lender,...</p>\n\n<a href=\"https://dowjonesnews.com/newdjn/logon.aspx?AL=N\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU1201861249.SGD","symbol_name":"Natixis Harris Associates US Equity PA SGD-H","start_time":0,"source_url":"https://dowjonesnews.com/newdjn/logon.aspx?AL=N","article_id":"2458602130","we_media_id":"106","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2458602130","pubTimestamp":1723464960,"columns":[],"sourceInfo":null,"weMediaInfo":{"media_name":"Dow Jones","introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"summary":"More than a year after several regional banks became unstable amid rising interest rates, the wave of consolidation is continuing.Bank of Nova Scotia, the Canadian lender, said it would buy a 14.9% stake in KeyCorp for $2.8 billion. KeyCorp, based in Cleveland, Ohio, has about 1,000 branches in 15 states and $187 billion in assets. The agreement follows the Capital One deal to buy Discover Financial for $35.3 billion earlier this year.For Scotiabank, the deal adds to returns for shareholders and gives them a bigger footprint in North America. For KeyCorp, it's a chance to raise funding on attractive terms, according to a statement from the company.Mergers can make the financial system more stable if they shore up liquidity. Even though there is much less turmoil in the sector now, the events last year may make banks more cautious about keeping their balance sheets in rude health.In 2023, Silicon Valley Bank and Signature Bank collapsed in March and First Republic failed in May. Other f","collect":0,"end_time":0,"defaultTopTitle":"","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU1201861249.SGD":"Natixis Harris Associates US Equity PA SGD-H","LU1668664300.SGD":"Blackrock World Financials A2 SGD-H","LU0211331839.USD":"FRANKLIN MUTUAL GLB DISCOVERY \"A\" (USD) ACC","DFS":"发现金融","LU0980610538.SGD":"Natixis Harris Associates US Equity RA SGD-H","BK4516":"特朗普概念","FRCB":"第一共和银行","LU1201861165.SGD":"Natixis Harris Associates Global Equity PA SGD","LU0053666078.USD":"摩根大通基金-美国股票A（离岸）美元","BK4585":"ETF&股票定投概念","LU1791807156.HKD":"BGF WORLD FINANCIALS \"A2\" (HKDHDG) ACC","COF":"第一资本","BK4211":"区域性银行","BK4166":"消费信贷","BK4588":"碎股","LU1861217088.USD":"贝莱德金融科技A2","LU0106831901.USD":"贝莱德世界金融基金A2","LU1861220207.SGD":"Blackrock FinTech A2 SGD-H","BK4589":"SVB概念","BK4207":"综合性银行","LU0648000940.SGD":"Natixis Harris Associates Global Equity RA SGD","LU0130102774.USD":"Natixis Harris Associates US Equity RA USD","KEY":"KeyCorp","LU0648001328.SGD":"Natixis Harris Associates US Equity RA SGD","LU2360107671.USD":"BGF FINTECH \"A4\" (USD) INC","LU0130103400.USD":"Natixis Harris Associates Global Equity RA USD","BNS":"丰业银行"},"translate_title":"丰业银行收购KeyCorp的部分股份。为什么银行合并年复一年的动荡仍在继续。——Barrons.com","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"KEY":1,"BNS":0.9,"COF":0.9,"DFS":0.9,"FRCB":0.9},"content_text":"By Brian Swint \n\n\n  More than a year after several regional banks became unstable amid rising interest rates, the wave of consolidation is continuing. \n\n\n     Bank of Nova Scotia, the Canadian lender, said it would buy a 14.9% stake in KeyCorp for $2.8 billion. KeyCorp, based in Cleveland, Ohio, has about 1,000 branches in 15 states and $187 billion in assets. The agreement follows the Capital One deal to buy Discover Financial for $35.3 billion earlier this year. \n\n\n     For Scotiabank, the deal adds to returns for shareholders and gives them a bigger footprint in North America. For KeyCorp, it's a chance to raise funding on attractive terms, according to a statement from the company. \n\n\n     Mergers can make the financial system more stable if they shore up liquidity. Even though there is much less turmoil in the sector now, the events last year may make banks more cautious about keeping their balance sheets in rude health. \n\n\n     In 2023, Silicon Valley Bank and Signature Bank collapsed in March and First Republic failed in May. Other financial institutions swooped in to pick up the pieces. \n\n\n     Write to Brian Swint at brian.swint@barrons.com \n\n\n     This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal. \n\n\n \n\n\n  (END) Dow Jones Newswires\n\n\n  August 12, 2024 09:16 ET (13:16 GMT)\n\n\n  Copyright (c) 2024 Dow Jones & Company, Inc.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2458602130"}