There may be a merger on the horizon for M&T Bank, as Banco Santander SA looks primed to take a majority stake in the company. The banks are currently in negotiations with the U.S. Federal Reserve to iron out details of the deal, according to Bloomberg.

Banks Discuss Changes

The transaction is far from formally closed, and it will be another two weeks before we can expect to hear anything official. Bloomberg received information on the potential merger through “people with knowledge of the matter” who wished to remain anonymous.

If the banks reach an agreement, Santander would be able to put Sovereign Bank, a unit of the larger bank, under the management of M&T. More specifically, there were talks of M&T Chief Executive Officer Robert Wilmers and his team being the group that would oversee Sovereign Bank.

M&T to Save the Day

M&T has a strong reputation when it comes to banking matters, considering the institution did not post one loss during the financial crisis. A merger would combine the two banks, similar in size, to become the ninth-largest U.S. savings institution by deposits.

M&T is hesitant, not wanting Santander to have complete control, yet it still wants to combine with Sovereign. This dilemma, mainly over what the “informal talks” revolve around, will require compromise on both sides. The final step in the transaction could take place in the form of a stock merger. Santander would need to trade shares of the Sovereign unit for shares in M&T. It would be a gradual exchange in which Santander would increase its ownership level within the first few years.

Santander Collects Acquisitions

This year Santnder has acquired:

  • $4 billion of car loans from HSBC.
  • A 70% Stake in Allied Irish’s Polish Bank, at a cost of $3.7 billion
  • More than 300 bank branches from the Royal Bank of Scotland Group Plc.

Santander has been on an acquisition roll and it looks like this next merger will be no different. A more finalized explanation on exactly what is expected to take place should be issued in upcoming weeks.

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  • Tambdan1

    Anonymous said…
    I’m sorry I don’t live in Delaware county, but I do work for M&T. Just remember when you call that 800 # for help cause you can’t get in touch with your local branch any more it’s just a regular person trying to make a living on the other line. I have to say that I WILL do as much as I can for you without loosing my job. Those of us who answer that phone are the bottom of the barrel. We are not even aloud to get off those phones except for our 3 brakes a day. God forbid we have to go to the bathroom. We get penalized for it. And when you do get one of us who does spend some time with you to help sort out a problem just remember if we have gone over our 2 minute limit know that we can forget about a raise. I;m sorry again for not working for a better company but I need to put food on the table also. Beleive me if I did not get a free account here I would not be banking with M&T.
    Anonymous said…
    We have a car loan through M&T bank. It turns out they cashed a check in Nov for October’s car payment and then resubmitted a COPY again in Dec. Plus, they submitted December’s payment the same day. This bounced my account. My bank, Commerce refunded my overdraft fees:)and said it was M&T’s fault.

    Anonymous said…
    I just wanted to add a comment. I used to work for M&T and let me tell you it is a horrible place to work. I hated working there. The higher ups (i.e. regional and area sales managers) are a bunch of a**holes. The branch managers are not too much better either. I was hired right out of college, as M&T says they try to attract the brightest and the best… well, if you are right out of college and looking for a job, do not apply there. M&T is all about sales goals. That is truly all they care about, making sales goals, and making money off thier customers (i.e. fee income). If you do not make your sales goals (which are very hard to meet) forget about going anywhere with this company. They do not care about their customers or employees. If you are a regualar “joe” customer with just a regular checking and savings, they don’t give a shit about you. You are not considered the “ideal” customer. M&T tells us this during sales meetings. They are looking for customers who can bring them $$$. So don’t even bother banking there unless you have something to invest…otherwise, they will fee the sh*t out of you and treat you like dirt. M&T…you suck!!!
    Anonymous said…
    Had a car loan, sold the car, paid off the loan and have been waiting 3 weeks for the title. This is outrageous!! What gives with this bank???
    Anonymous said…
    M & T bank should be investigated by the SEC.
    Anonymous said…
    Beware of this bank. I was with M&T investment group for five years and they lie and steal. Has anyone else had a problem with the investment side?
    21In sum, unless you are rich enough, or if you enjoy paying all sorts of fees (for your FREE account) or if you like being cheated by their record keeping system, avoid this corporate-minded bank like the plague. Living in Western NY I wanted to support local business as M&T was based here, but I’d sooner stuff my money in a crack dealer’s mattress before dealing with this poor excuse for a bank again. I hate M&T Bank, but at least now I’m getting reasonable service from another local community bank who actually values me as a customer, and doesnt treat me like some average joe-schmoe slime-ball like M&T did.

    Originally I worked for Provident Bank but because Provident merged with M&T in 2009 we became part of the M&T family. M&T Management, at least in the DC Metro area (VA specifically) does not have a clue what to do. Sales pressure is everywhere and little, if any thought is given to operations. M&T is hemorrhaging their competent staff because of the VERY low wages compared to other banks in the area as well as gross mismanagement. If you work in a branch, in ANY position you have sales goals. If you do not meet those goals you will be hounded constantly. Managers have been caught changing hours so that overtime is not present and when confronted they have a different excuse every time as to why this is something acceptable for them to do. When HR is contacted they refer it to another department who in turn refers it to a third department who will refer you back to HR. No management on any level wants to “put their neck out there” and make a decision, always referring it back to someone else so that they can’t be held accountable. Customer Support number is a joke as all they ever do (besides giving incorrect information to the customer) is refer livid customers back to the branch that referred them to the customer service line in the first place. In store branches are left out in the cold so to speak as all the back office support services close down at ~4PM leaving 3 hours where in store branches cannot call anyone for any assistance, with the exception of the IT Help Desk. Branches are intentionally under-staffed with FT employees being told on a daily basis that they shouldn’t complain that they went from 40 hours to 32 hours because M&T can replace them with someone else within a week and they should be thankful they have a job. Advancement is non-existent…the position you start in will likely be the position you still hold years from now if you end up staying with the company that long.

    You are frequently asked to do the job of your superior (ex: teller line staff doing managerial duties) as well as those in other departments such as Mortgage reps and Investment reps. *Extremely hard to move up unless you want to work at the bank for 20 years
    *Pay is horrible
    *The bank is overall a horrible bank that has gone back in time…technology wise and just the way things are done (we don’t even have a legit fax machine)
    *Its like working in a jail cell (we were just allowed to have drinks behind the teller line again…we cannot sit down or have comfortable mats to stand on just the carpet covered cement floor
    *WAYYYYYYYY UNDER STAFFED and wont hire any more tellers