The prospective merger of two of California's biggest thrifts is sure to increase the matchmaking tension among California's remaining crop of banks and thrifts, market watchers say.

"You'll have a triumvirate on the thrift side with H.F. Ahmanson, Washington Mutual, and now a bigger Golden State Bancorp," said analyst Thomas F. Theurkauf of Keefe, Bruyette & Woods Inc., New York.

Limited Time Offer

Save $400 off your subscription. Special offer ends April 30, 2017.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.