James Stevens, partner and co-leader of Troutman Pepper Locke’s Financial Services Industry Group, was quoted in a recent S&P Global Market Intelligence article by Rica Dela Cruz, Lauren Seay, and Joe Mantone, “CAMELS overhaul could serve as a catalyst for US bank M&A.” The article discusses the Federal Financial Institutions Examination Council’s proposed revisions to the CAMELS rating system, which would shift regulatory emphasis toward an institution’s financial condition and risk profile and reduce the weight historically given to the “Management” component. Commenting on the M&A implications, James noted that lower CAMELS ratings on either the buy or sell side can hold back deals and other growth initiatives, and that raising ratings under a more targeted framework “could encourage M&A” as well as branching and other expansion efforts.

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