Money & Investing – Banks.com

The stock market opened higher this morning on merger and acquisitions chatter in the financial sector. MarketWatch reports on the biggest news, surrounding rumors that Barclays is looking to acquire a retail bank here in the U.S.:

Barclays PLC is considering another major acquisition in the United States and is hunting for a retail bank that would give it more deposits and extend the presence of its Barclays Capital unit, The Wall Street Journal reported Tuesday, citing people familiar with the matter.

The bank, in response to potential changes in banking regulation, has designated an internal team to assess possible targets, the newspaper said. Still, Barclays isn’t in talks with any businesses in the U.S. and no deal is imminent, the Journal’s report said.

There are also rumors surrounding a similar possibility for the Royal Bank of Canada. However, these rumors are just that — rumors. And the rumors haven’t been enough to keep the Dow in the black. It has slipped into losing territory, during a month that many expect will be a turning point.

The Nasdaq and the S&P 500 have managed to so far hang on to gains, although those are being pared as the Dow slips. It should be interesting to see how things go today. Clearly, more substantial information is needed in order to encourage investors. Last week’s nonfarm payrolls is good start, but investors are waiting for better signs of sustainable economic recovery before they get back on board.

And, of course, it will be especially interesting to watch how things go with the banking sector. Would continued consolidation cause more problems, making it possible that we end up with more banks that are too big to fail? Or does the fact that the rumors hinge on foreign banks indicate that it wouldn’t really be a huge U.S. problem? Of course, if we learned one thing from the global financial crisis, it’s that we are all quite interconnected in terms of economics…

Disclaimer: I am not an investment professional. Nothing in this piece or on this Web site should be construed as investment advice. Before making investment decisions, do your own research and/or consult with an investment professional. All investment comes with the risk of loss. You are responsible for your own investment decisions and any loss that may result from your decisions.