Global Deregulation Shift to Spur Bank Deal Wave, KBW CEO Says

A “generational change in regulation” is set to fuel consolidation across financial services as policymakers ease pressure on banks, Keefe, Bruyette & Woods Chief Executive Officer Tom Michaudsaid.

The shift is global. While investors have questioned the durability of US deregulation, “Europe is joining the parade on deregulation of the banks,” Michaud said, as policymakers respond to weaker performance by their largest lenders relative to US peers. That should “level the playing field” and spur more consolidation, particularly in Europe, he said in a Bloomberg TV interview Wednesday.

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