MAJOR BANK MERGER WRECKED BY UNDERSTANDING

May 5, 2023 -Durt Fibo

An almost $13.4 billion deal between Toronto-Dominion Bank and First Horizon Bank was cancelled late last night, leaving the two institutions bereaved but relieved. The anticipated merger had first been made public news in February of 2022, when the Canadian bank announced it would be acquiring the US-based First Horizon. As the latter began losing share value by August of that same year, then the US played host to 3 bank failures so far this year (creating a 40% drop in First’s shares in the past few months), and a further extension of the timeline set ahead to this month approached, Toronto-Dominion finally threw up their hands and lunches and terminated the marriage, with the prepared excuse that it couldn’t see a clear path to getting regulatory approval.

Legal slaverers immediately pointed out that the breech will mean Toronto will pay First Horizon $200 million, plus $25 million as a painful reminder of the original promises exchanged. But First Horizon Bank, part of the First Horizon Corporation based in Memphis, Tennessee, tore up its nuptial plumage as its stock sagged another 36% overnight.

Business acquaintances and neighbors were alarmed by the breech at the altar, and all the real year-long biases spilled out as the Tennessee contingent berated Canadian money as “lil’ dollars,” while the patricians of Toronto derided the Memphites as “toothless, lice-ridden, chain gang fornicators.”