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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.

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.


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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

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