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Super-Regionals Recover and Look for Acquisition Targets: Marty Mosby, Managing Director at Guggenheim Securities, LLC, Interviews with The Wall Street Transcript

67 WALL STREET, New York - July 1, 2013 - The Wall Street Transcript has just published its U.S. Banking Review 2013 Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs, Equity Analysts and Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: U.S. Banking Review 2013

Companies include: Bank of America Corporation (BAC), Citigroup, Inc. (C), JPMorgan Chase & Co. (JPM), Wells Fargo & Company (WFC), US Bancorp (USB), PNC Financial Services Group I (PNC), SunTrust Banks, Inc. (STI), Regions Financial Corp. (RF), BB & T Corp. (BBT), Huntington Bancshares Inc. (HBAN), KeyCorp (KEY), Fifth Third Bancorp (FITB), M&T Bank Corp. (MTB), First Horizon National Corp. (FHN), Zions Bancorp. (ZION), The Bank of New York Mellon Co (BK), Northern Trust Corporation (NTRS), State Street Corp. (STT) and many more.

In the following excerpt from the U.S. Banking Review 2013 Report, an expert analyst discusses the outlook for the sector for investors:

TWST: So it sounds like you expect further M&A activity.

Mr. Mosby: That's correct. We don't think that there are a lot of strategic deals, but we think there are a lot of fill-in acquisitions in markets where they can find regional banks that - with the heavier burden from the regulatory environment, with the overhang that's still there for them to have to deal with, to actually start to get out of and really be able to recover their safety and soundness and incrementally add the capital that's going to be required under the Basel III requirements - that there are going to be some regional banks that will want to join and partner with somebody who already has a lot of that stability and can provide products and services and let them get away from what you would call the recovery process and get back to serving their customers. It's an easy way to finish the process - to find a strong partner that then cures a lot of those issues - and then those banks can enjoy the benefit of being in a bank that's continuing to push shareholder value and look for opportunities and really be able to go from the defensive to the offensive as they start to serve their customers again.

TWST: You mentioned regulatory issues. What are the key issues the group is facing?

Mr. Mosby: There are, with Dodd-Frank, a litany of issues that have rolled out for these banks to have to deal with. Whether it's going to be: one, the increased capital that they're going to have to hold; or it's going to be the increased liquidity that's going to have to be stored up on the balance sheets; or if you look at it operationally, it's going to be how do you originate mortgages and how do you go through the process of making sure that they qualify for all the stipulations that are now out there for the agencies; or you can look at interchange fees or deposit service charges that have been restructured. There are numerous pressure points that either, from an operational standpoint, you have to ramp up your risk management, or from just being able to have to hold so much more capital - these are all pressures that will push banks that are on the cusp of really being able to be profitable and survive in a safe and sound way to look at it as going forward, it's much better to be a part of a stronger organization.

TWST: How is credit quality faring overall in these two regions?

For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.