How big is BofA? Not big enough apparently.
Bank of America has begun a quiet push to raise the regulatory cap that bars any US bank from deals that would give it more than 10 per cent of the country’s total bank deposits, according to the Wall Street Journal.
BofA, the only bank close to the cap with about 9 per cent of total US deposits, has won a show of support before the North Carolina Bankers Association and the New Hampshire Bankers Association. It has also approached bankers in Massachusetts and other states to support potential legislation this spring in Congress.
Heroically, BofA is arguing that the rule leaves US banks artificially small and vulnerable to foreign takeover because while US banks are bound by the cap, it doesn’t prevent foreign-based banks – who may also be among the country’s top deposit holders – from merging with or acquiring US banks.
A spokeswoman for Bank of America said the bank’s effort isn’t a lobbying campaign but “part of an ongoing educational effort” about an important competitive issue.
As Bank of America is highly unlikely to find itself the subject of unwelcome attention by a foreign predator, and is more commonly mentioned as a potential buyer of numerous European lenders, we can only assume they are selflessly raising this issue on behalf of their smaller rivals.
Hmmm…..