M&T Bank, People's United Financial get merger approval from the Fed

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• M&T Bank's (NYSE:MTB) application to acquire People's United Financial (NASDAQ:PBCT) was approved by the Federal Reserve Board, the bank regulator said on Friday.
• The Federal Reserve Board will incorporate the effects of the acquisition into M&T Bank's (MTB) capital requirements using the 2023 stress test to recalculate M&T's stress capital buffer.
• M&T (MTB) is normally on a two-year stress test cycle and will receive a new stress capital buffer this year. But because this year's test won't reflect the effects of the acquisition, the bank will be required to undergo an additional calculation next year.
• Last month, M&T Bank (MTB) and People's United (PBCT) extended their merger closing deadline to June 1 because they hadn't yet received the Fed's approval.