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Fed's review of KeyCorp deal signals lighter touch on bank mergers by central bank


//business-finance.news-articles.net/content/202 .. ghter-touch-on-bank-mergers-by-central-bank.html
Published in Business and Finance on Friday, December 13th 2024 at 12:20 GMT by MarketWatch   Print publication without navigation

  • Analyst hails Fed's quicker-than-expected approval of an investment in KeyCorp by the Bank of Nova Scotia as a good sign for more dealmaking.

The Federal Reserve has approved KeyCorp's acquisition of a $2 billion cash infusion from Scotiabank earlier than anticipated, leading to a positive movement in KeyCorp's stock price. This approval allows KeyCorp to bolster its balance sheet with the capital injection, which was part of a deal announced in July where Scotiabank agreed to sell its 100% stake in KeyCorp's Series I preferred stock. The transaction not only strengthens KeyCorp's financial position but also reflects the regulatory bodies' confidence in KeyCorp's strategic direction. Following the news, KeyCorp's shares experienced an uptick, signaling investor approval of the move.

Read the Full MarketWatch Article at:
[ https://www.marketwatch.com/story/fed-clears-keycorps-2-billion-cash-infusion-from-scotiabank-earlier-than-expected-and-its-stock-is-up-4bd79f44 ]

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