Rodge Cohen Discusses Bank Consolidation on Bank Director's 'Slant' PodcastMarch 2, 2022
Senior Chair Rodge Cohen appeared on Bank Director’s “Slant Podcast” to discuss bank consolidation with editor-at-large Jack Milligan in the episode, “A Front Row Seat on Banking’s Consolidation.” Rodge stated that consolidation has made the industry more rational and competitive, eliminating artificial fragmentation previously created by statutory geographic restrictions. And although increased size can create more systemic risk, he believes bank regulators and Dodd-Frank have greatly improved the safeguards to identify and contain this risk.
Rodge also shared recollections about some of the bigger banking deals he has handled, including client JPMorgan Chase’s merger with Bank One (a “visionary merger”), client SunTrust’s successful merger with BB&T, and client Wells Fargo’s unsolicited bid for First Interstate. The last deal, he noted, was hampered by lingering tensions between the banks. “Hostility that goes beyond signing is a recipe for disaster,” Rodge noted.
Rodge addressed the future of community banks in the wake of bank consolidation. To prosper, these banks—which are crucial to the financial ecosystem— must be in a position to address the challenges posed by regulatory compliance and technology. Rodge suggested the solution of creating third-party industry “utilities” that could undertake certain technical regulatory duties for these banks, such as anti-money laundering controls and vendor due diligence.
To hear the podcast, click here.