Business & Finance
Citigroup and Wells Fargo position as potential buyers for regional lenders amid regulatory shift
Unlike rivals capped by deposit limits, both institutions have regulatory leeway to pursue large regional bank acquisitions.
The short version
- Citigroup and Wells Fargo have enough room below the 10% national deposit cap to acquire large regional lenders following easing regulatory hurdles under the Trump administration.
- Industry analysts and bankers point to regional banks including Fifth Third, Huntington, Citizens, KeyCorp, and Regions as viable acquisition targets.
- Despite a more permissive regulatory environment, overall North American bank merger activity fell significantly in the first half of 2026 as strong performance makes potential targets reluctant to sell.
Key facts
- JPMorgan Chase and Bank of America are legally prevented from acquiring large regional banks because they hold more than 10% of total national deposits.[CNBC]
- Citigroup and Wells Fargo remain under the national deposit ceiling, giving them the legal capacity to pursue major bank acquisitions.[CNBC]
- Investment bankers and analysts identified Fifth Third, Huntington, Citizens, KeyCorp, and Regions as strong potential targets for either megabank, with Zions also noted for Wells Fargo and First Horizon for Citigroup.[CNBC]
- Citigroup Chief Executive Jane Fraser stated in April that the bank is focused on organic growth, while Wells Fargo Chief Executive Charlie Scharf indicated in March that his institution would consider major deals if the right opportunity arose.[CNBC]
- According to data from EY, North American bank merger values dropped by over 50% year over year to $30.1 billion during the first six months of 2026.[CNBC]
What remains uncertain
- Whether either bank will actually pursue an acquisition remains unknown, particularly as Citigroup continues restructuring and potential targets remain reluctant to sell due to strong stock valuations.[CNBC]