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Market Pro: These 3 Banks Potentially on the Block

Wednesday, 27 Apr 2011 | 6:09 PM ET

Looking for an M&A play? Perhaps you should look no further than you local bank.

According to Frederick L. Cannon, of Keefe, Bruyette & Woods, investors should expect to see consolidation in financials.

He explains right now banks have been reluctant to jump into the deal game, but “we think as time progresses the lack of loan demand means that banks will have to get together. We do think there will be a lot of banks out there that will merge."

Bernanke Talks Up Banks
Why a bank consolidation wave is on the way, with Frederick L. Cannon, Keefe, Bruyette & Woods director of research, chief equity strategist, and the Fast Money traders.

That begs the question, which names are in play.

”Most of the mergers will likely be small players," he says. However, that’s not to say there aren’t a few opportunities. Following are Cannon’s top takeover targets:

Regions
Synovus
Capital Source

”In the case of Regions, BB&T would be an ideal partner. And a Canadian could come down and pick up Synovus,” he says.



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Trader disclosure: On April 27, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders Karabell owns (AAPL); Karabell owns (CSCO); Karabell owns (GE); Karabell owns (GOOG); Karabell owns (IBM); Finerman and Finerman's firm own (AAPL); Finerman and Finerman's firm own (BP); Finerman owns (C); Finerman and Finerman's firm own (CVS); Finerman's firm owns (IBM); Finerman's firm owns (JPM) and (JPM) leaps; Finerman owns (JPM); Finerman and Finerman's firm own (MSFT); Finerman's firm owns (TGT); Finerman owns (UNG); Finerman owns (USO); Finerman's firm is short (IWM), (MDY), (SPY); Finerman's firm is long S&P 500 puts; Finerman's firm is long Russell 2000 puts; Grasso owns (AMD); Grasso owns (ASTM); Grasso owns (BA); Grasso owns (BAC); Grasso owns (C); Grasso owns (CSCO); Grasso owns (JPM); Grasso owns (FITB); Grasso owns (LIT); Grasso owns (LPX); Grasso owns (MHY); Grasso owns (NDAQ); Grasso owns (PFE); Grasso owns (PRST)

For Zachary Karabell
River Twice Capital owns (AA)
River Twice Capital owns (DD)
River Twice Capital owns (GE)
River Twice Capital owns (JCI)
River Twice Capital is short (QQQQ)
River Twice Capital owns (QCOM)
River Twice Capital and Karabell own (POT)
River Twice Capital own (SBUX)
River Twice Capital and Karabell own(SLV)
River Twice Capital is short (SMH)
River Twice Capital is short (SPY)
River Twice Capital is short (XLF)

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Accounts Managed by Brian Kelly Capital own (GLD)
Accounts Managed by Brian Kelly Capital own (EBAY)
Accounts Managed by Brian Kelly Capital own (SLV)
Accounts Managed by Brian Kelly Capital own (RDC)
Accounts Managed by Brian Kelly Capital own (SU)
Accounts Managed by Brian Kelly Capital own (LNQ)
Accounts Managed by Brian Kelly Capital own (DIA)
Accounts Managed by Brian Kelly Capital own (GDXJ)
Accounts Managed by Brian Kelly Capital own euro futures
Accounts Managed by Brian Kelly Capital own gold futures
Accounts Managed by Brian Kelly Capital are short yen
Accounts Managed by Brian Kelly Capital own natural gas futures

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Stuart Frankel & Co and its partners own (AMD)
Stuart Frankel & Co and its partners own (AOL)
Stuart Frankel & Co and its partners own (CSCO)
Stuart Frankel & Co and its partners own (CUBA)
Stuart Frankel & Co and its partners own (GERN)
Stuart Frankel & Co and its partners own (HPQ)
Stuart Frankel & Co and its partners own (HSPO)
Stuart Frankel & Co and its partners own (MSFT)
Stuart Frankel & Co and its partners own (NYX)
Stuart Frankel & Co and its partners own (PFE)
Stuart Frankel & Co and its partners own (PRST)
Stuart Frankel & Co and its partners own (SDS)
Stuart Frankel & Co and its partners own (UAL)
Stuart Frankel & Co and its partners own (XRX)
Stuart Frankel & Co and its partners are short (QQQQ)
Stuart Frankel & Co and its partners are short (AAPL)
Stuart Frankel & Co and its partners are short (INTC)

For Mike Khouw
Cantor Fitzgerald is a Market Maker in (LYB)

For Frederick Cannon
KBW expects to receive or intends to seek compensation for investment banking services from (WFC) in the next 3 months.
KBW is a Market Maker in (WFC)

For Paul Sankey
Deutsche Bank and/or its affiliate(s) has received non-investment banking related compensation from (OXY.N) within the past year.
(OXY.N) has been a client of Deutsche Bank Securities Inc. within the past year, during which time it received non-investment banking securities-related services.
(HES.N) is an Investment Banking client of DBSI
Deutsche Bank and/or its affiliate(s) has received non-investment banking related compensation from (HES.N) within the past year.
(HES.N) has been a client of Deutsche Bank Securities Inc. within the past year, during which time it received non-investment banking securities-related services.
(CVX.N) is an Investment Banking client of DBSI
Deutsche Bank and/or its affiliate(s) has received non-investment banking related compensation from (CVX.N) within the past year.
(CVX.N) has been a client of Deutsche Bank Securities Inc. within the past year, during which time it received non-investment banking securities-related services.
(XOM.N) is an Investment Banking client of DBSI
Deutsche Bank and/or its affiliate(s) has received non-investment banking related compensation (XOM.N) within the past year.
(XOM.N) has been a client of Deutsche Bank Securities Inc. within the past year, during which time it received non-investment banking securities-related services.

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