Cap Markets

As the economy strengthens, more banks are facing pressure to pay up for the best lenders and tech specialists.

The California company has agreed to buy Grandpoint Capital, a business bank in Los Angeles, for $641 million.

There could be a pause in new issuance as CLO managers wait to see if the government will appeal; longer term, the pace will pick up as the playing field is leveled for smaller managers.

A three-judge panel for the D.C. Circuit Court of Appeals has sided with the LSTA in its lawsuit seeking to reverse rules requiring CLO managers to hold "skin in the game" under Dodd-Frank.

At least eight banks are in various stages of formation, including two that have opened. While that is nowhere near the de novo activity of the early 2000s, it's a positively brisk pace compared with the standstill that existed for many years after the financial crisis.

The company, which is planning to sell at least $25 million in stock, said in a presentation tied to the offering that it is well positioned for M&A.

The private equity firms plan to sell a total of 3 million shares in the Houston company in coming weeks.

Swelling capital levels, tax cuts and changing attitudes about post-crisis regulation could encourage bigger banks to issue the one-time payouts to reward shareholders and better manage their returns.

The company, which raised $23 million through a private placement, had a 6.97% total capital ratio at Dec. 31.

The Detroit company recorded an 11% increase in car loans and leases originated during the fourth quarter, as well as a jump in yields. Ally appears to be benefiting from Wells Fargo's substantial retrenchment in auto lending.