Bloomberg Talks Atlas CEO Talks Regional Banks
Oct 21, 2025
Bob Diamond, former Barclays CEO and current Atlas CEO, dives into the world of regional banks and consolidation. He argues that recent dislocation poses unique opportunities and explains how interest rate shifts impact these banks' outcomes. Diamond advocates for consolidation, citing that the U.S. has too many banks, which impairs competitiveness. He highlights the benefits of merging, such as cost savings and improved returns on equity, while noting strong credit quality in lending. The discussion wraps up with insights on New York City's recovery post-COVID.
AI Snips
Chapters
Transcript
Episode notes
Consolidation Is The Fix For Regionals
- Bob Diamond argues the regional banking sector is fundamentally strong despite individual weak banks and interest-rate shocks.
- He sees consolidation as the main path to higher ROEs and stronger, more competitive banks.
Cut Costs By Merging Similar Banks
- Consolidate similar banks to cut duplicate technology and regulatory costs and unlock real cost synergies.
- Use purchasing accounting benefits to raise ROE when a stronger bank acquires a smaller one.
Geography Drives Merger Value
- The best merger targets are in-state or geographically close because front-office synergies and client overlap are clearer.
- Regional and community banks still provide 40–50% of US small-business lending, preserving their core role.