Deregulation to spark bank M&A boom, Wells Fargo's Mike Mayo says

Wells Fargo analyst Mike Mayo believes that investors may be missing out on the next deregulation-led M & A boom. In a Wednesday note to clients, Mayo made the case that bank mergers and acquisitions will accelerate amid the "best regulatory inflection in three decades." "Multi-year deregulation story is still underappreciated. We continue to believe that banks are in a generational period of deregulation," Mayo wrote. "Clarity on stress tests, finalization of Basel 3 endgame and a lighter touch toward deals and regulatory interpretation are all in early stages that can continue through 2028." Upcoming regulatory tailwinds could include fast approvals and less scrutiny for large deals. Banks also have a higher ability to extract cost synergies, such as through branch closures, and less res