NY Community, Astoria Deal Likely to Face Scrutiny

N.Y. Community Gets Scale, but Little Else, From Astoria Deal
– American Banker

American Banker interviewed Manatt's Craig Miller, co-chair of the firm's Financial Services and Banking practice, for an article on New York Community's purchase of Astoria Financial.

American Banker reports that the acquisition is expected to be completed by December 2016. Insiders told the publication that the deal team had been in talks with regulators for several years, as the company neared $50 billion in assets.

It is likely that the company's timeline was influenced by the fact that deals, such as M&T Bank's purchase of Hudson City Bancorp, have taken a long time to gain regulatory approval, said Miller. "You can always exceed expectations, but it is better not to fall short of them for shareholders," he said.

An acquisition of this size is likely to face additional scrutiny, Miller said. Compliance with Bank Secrecy Act and anti-money laundering laws, opposition from community groups and capital management are typically the biggest sticking points in getting approval, he added.