ch19 - ch19 Student 1 The is the law that requires each...

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ch19 Student: ___________________________________________________________________________ 1. The____________________________________________ is the law that requires each merging bank to seek approval from its principal federal regulating agency before a merger can take place. ________________________________________ 2. Under the terms of Bank Merger Act, the federal regulating agencies must give top priority to the______________________ of the proposed merger. ________________________________________ 3. In the______________________ method of acquiring a bank, the bank purchases all or a portion of another bank's assets. ________________________________________ 4. In the____________________________________________ method of acquiring a bank, the bank assumes all of the assets and liabilities of the other bank. ________________________________________ 5. If the earning per share of the merged firm has declined then the shareholders have suffered a problem known as____________________________________________ . ________________________________________ 6. The______________________ tells how may shares of stock the shareholders of the acquired firm will receive from the acquiring firm. ________________________________________ 7. The____________________________________________ is the amount over the current stock price shareholders of the acquired firm will receive from the acquiring bank in a merger. ________________________________________ 8. The____________________________________________ is a measure of the market concentration of a given market area. The larger this number is the more concentrated the market. ________________________________________ 9. A large metropolitan or money center bank is often called a(n)______________________ . ________________________________________ 10. A(n)______________________ takeover is a merger which is resisted by the existing management and stockholders. ________________________________________ 1
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11. If a bank can show that the merger has___________________________________________ it may be able to overcome anticompetitive problems of the merger. This is the impact the merger has upon the convenience and service needs of the community. ________________________________________ 12. To most authorities, the recent upsurge in mergers reflects the expectation of the stockholders that the____________________________________________ will increase once the merger is completed. This allows the merged bank to maximize future earnings. ________________________________________ 13. One reason banks pursue mergers is for______________________. This allows the bank to reduce fluctuations in revenues and net income. ________________________________________ 14. One reason banks pursue mergers is for______________________. This allows the bank to enter new markets and find new sources of revenue. ________________________________________ 15. When the existing ownership of the bank experiences a loss in their share of the company due to an increased number of shares going to new stockholders it is known as ______________________. ________________________________________ 16. "Intangible synergies" is a relatively new name for _____________. ________________________________________ 17. One of the reasons for a merger is _____________________. This where the merger is encouraged by the FDIC as a way to conserve scarce federal deposit insurance resources. ________________________________________ 18. Many mergers arise from expected ________________________. This takes place particularly when the acquired firm has earnings losses that can be used offset taxable profits of the acquirer. ________________________________________ 19. A bank may increase future earnings by _______________________. The bank can achieve greater efficiency by consolidating operations and unnecessary duplication. ________________________________________ 20. When a bank expands the number of service options it offers after acquiring another financial firm they have practiced ___________________________________. ________________________________________ 21. When a bank enters into a new market area as the result of a merger with another financial institution they have practiced _________________________. ________________________________________ 2
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22. When a national bank wants to acquire another bank they must apply to the _______________ for approval.
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