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Tuesday, Oct 15
Don't rule out TD/Citizens speculation
- The biggest barriers to TD Bank buying Citizens are price and integration risk, says CIBC's Rob Sedran, responding to weekend speculation the Canadian lender is thinking about bidding for RBS's U.S. retail banking business. "Given the overlap with TD’s existing footprint, there is no question that such an acquisition would be a strategically attractive one, turning the bank’s already solid platform into dominant one in terms of deposit market share in the U.S. Northeast."
- Sedran does note the size of the deal - maybe as much as $13B - is too large for the Canadian market to absorb, and TD bank might need to get creative, such as a spinoff of another of its operations. He also reminds "not interested" was TD management's answer last year when asked about Citizens. What facts have changed since?