Bill Cooper could step down as the Minnesota company's chief executive sometime next year, and two insiders appear to be the early favorites to replace him.

Moody's Investors Service has downgraded its credit rating on First Niagara Financial Group (FNFG), citing concerns about the Buffalo banking company's asset quality, profitability and capital levels.

Xenith Bankshares (XBKS) in Richmond, Va., has agreed to buy Colonial Virginia Bank in Gloucester, Va.

Think M&A in Illinois is out of gas? Call AAA. Auto Club Group, one of the many AAA clubs across the country, has agreed to buy the $465 million-asset National Bancorp in Sycamore, Ill.

Big Blue is trying to combine the products of several security-tech companies it has bought in recent years into a fraud detection system that compliance-minded banks want to buy. The challenges facing the vendor and its clients overlap considerably.

CITBA Financial (CBAF) in Mooresville, Ind., has terminated its proposed merger with Merchants Bancorp in Carmel. CITBA said Wednesday that it decided to terminate the deal because of delays obtaining regulatory approval.

Regulators are laser-focused on compliance, particularly when reviewing merger applications. Associated, recently freed from an enforcement action, could use its clean bill of health to woo sellers.

Timothy Mullen, the company's former chief investment officer, wants management to informally evaluate the "best avenue to enhance long-term shareholder value," including any benefits from finding a buyer.

Benjamin Lawsky, the head of New York's Department of Financial Services, on Wednesday called for regulators to hold individuals responsible for recent industry scandals. He also warned that his agency may ban some banks from certain businesses over money-laundering violations.

Bank of America Corp. is cutting jobs today across co-Chief Operating Officer Thomas Montag's global trading and investment banking divisions, according to three people with direct knowledge of the decision.

Poage Bankshares (PBSK) in Ashland, Ky., has completed an acquisition that incensed one of its biggest investors.

Rockville Financial (RCKB) in Glastonbury, Conn., and United Financial Bancorp (UBNK) in West Springfield, Mass., have secured four of the five regulatory approvals needed to complete their high-profile merger.

Salisbury Bancorp (SAL) in Lakeville, Conn., has agreed to buy Riverside Bank in Poughkeepsie, N.Y.

Post-crisis structural changes will trigger a wave of community bank M&A, creating new regional bank powerhouses. Investors will pressure management to acquire, sell or return capital through dividends or repurchases. There will be no runners-up in the coming consolidation.

Associated Banc-Corp (ASBC) in Green Bay, Wis., seems poised to make acquisitions.

Westfield Bancorp in Westfield Center, Ohio, has agreed to buy Valley Savings Bank in Cuyahoga Falls, Ohio. The deal will give Westfield two additional branches and boost its assets to nearly $1 billion.

There is a lot of work to be done behind the scenes before Citizens can become independent of Royal Bank of Scotland, including the establishment of new technological, administrative and financial reporting systems, CEO Bruce Van Saun says.

A breakdown of M&A announcements in the financial services industry for the week ended March 15.

Talmer Bancorp (TLMR) in Troy, Mich., could enjoy a bigger-than-expected benefit from its purchase of Michigan Commerce Bank.

Once thought of as cheap capital, Tarp is getting more expensive as the dividend rate jumps from 5% to 9%. Banks that are still in the program could see the increase as one more force pushing them to consider their options.