European Bank Merger Mania Ahead?

If you're looking for a new M&A play, your search may be over. We're hearing that starting next week we could see a flurry of bank mergers.

How so?

On Wednesday the Bank of Spain said it would publish results of stress tests carried out on all Spanish banks "soon" though they didn't say exactly when.

And in a CNBC exclusive, senior economics reporter Steve Liesman has learned in the upcoming weeks other European countries will also be releasing stress test results.

• NEW SLIDESHOW: The Most Successful Traders Of All Time
  

The results should reveal which banks are well capitalized and which are not. And if a bank is found it does not have enough capital, it could result in a merger, says Liesman.

How should you game it?

I’d lean toward European banks that are healthy and take this as a buying opportunity, says Tim Seymour. Personally I like Banco Santander.

______________________________________________________
Got something to to say? Send us an e-mail at [e-mail] and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment but not have it published on our website send those e-mails to [e-mail].

Trader disclosure: On June 16, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Seymour owns (AAPL), (BAC), (NOK), (SBUX); Adami owns (AGU), (BTU), (NUE), (C), (GS), (INTC); Adami owns (MSFT); Adami’s wife works at Merck; Terranova owns (IPSU), (BX), (PFE), (UDN), (GMCR), (RSX), (TER), (AXP), (BMO), (BBY), (DIS), (XCO), (SWN), (AAPL), (IPI), (SU), (V), (TEVA), (FXE), (FXB), (XOM), (COP), (OXY), (RDS.A); Terranova owns S&P Futures; Terranova owns UK Pounds; Terranova is short the US Dollar; Edwards owns (PM); Pete Najarian owns (AMD) calls; Pete Najarian owns (BAC); Pete Najarian owns (BBY) a call spread; Pete Najarian owns (C) calls; Pete Najarian owns (TCK); Pete Najarian owns (CNI); Pete Najarian owns (NOVL); Pete Najarian owns (MRVL); Pete Najarian owns (XLNX); Pete Najarian owns (MCD) a call spread; Pete Najarian owns (TEX) calls

For JoeTerranova
Terranova works for (VRTS)
Terranova is chief market strategist of Virtus Investment Partners, LTD.
Virtus Investment Partners owns more than 1% of (AMKR)
Virtus Investment Partners owns more than 1% of (IGE)
Virtus Investment Partners owns more than 1% of (DBV)
Virtus Investment Partners owns more than 1% of (XLB)
Virtus Investment Partners owns more than 1% of (XLV)
Virtus Investment Partners owns more than 1% of (XLY)
Virtus Investment Partners owns more than 1% of (XLI)
Virtus Investment Partners owns more than 1% of (XLU)
Virtus Investment Partners owns more than 1% of (DRYS)

For Patty Edwards
Edwards owns (AAPL) for clients
Edwards owns (BAC) for clients
Edwards owns (BBY) for clients
Edwards owns (BJ) for clients
Edwards owns (BK) for clients
Edwards owns (C) for clients
Edwards owns (COP) for clients
Edwards owns (COST) for clients
Edwards owns (CVX) for clients
Edwards owns (DO) for clients
Edwards owns (HAL) for clients
Edwards owns (HD) for clients
Edwards owns (JPM) for clients
Edwards owns (KO) for clients
Edwards owns (MCD) for clients
Edwards owns (MS) for clients
Edwards owns (NE) for clients
Edwards owns (NOK) for clients
Edwards owns (PNC) for clients
Edwards owns (SBUX) for clients
Edwards owns (SLB) for clients
Edwards owns (STI) for clients
Edwards owns (V) for clients
Edwards owns (WFC) for clients
Edwards owns (WFT) for clients
Edwards owns (WMT) for clients
Edwards owns (XOM) for clients
Edwards owns (PM) for clients
Edwards owns (SPY) for clients
Edwards owns (QQQQ) for clients
Edwards owns (VXX) for clients
Edwards owns (GLD) for clients
Edwards owns (PGM) for clients

For Brad Hintz
Hintz owns (MS)
Hintz owns (CME)

For Mike Khouw
Cantor Fitzgerald makes a market in (MS)

For Nishu Sood
Deutsche Bank owns 1% or more of KBH, TOL, HOV & RYL
Deutsche Bank provides Investment Banking services to KBH, TOL, PHM, LEN, HOV & RYL
Deutsche Bank has received non-investment banking compensation from PHM, LEN, MTH, RYL
Deutsche Bank provided non-investment banking securities-related services to PHM, HOV

For Anthony Scaramucci
SkyBridge Capital owns (RAI)

CNBC.com with wires