President Trump Saves American Bank From Canada

Inadvertently, sure. But a win's a win!
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Sure, he’s letting the “worst trade deal in the history of the worldhang around—for now. But don’t think that President Trump is letting those crafty Canucks get away with murder at the expense of the American worker. Consider the workers at PrivateBancorp. These poor people already have to wear bullet-proof vests and Kevlar helmets on their daily commutes through the carnage that is Chicago. He’s not going to make them go work for those socialist northerners at CIBC and their pretty-boy prime minister.

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Now—as he had let us all know ad nauseam—Trump is a savvy negotiator. The best. You’ve never seen negotiating like this (a statement that may be the most truthful he’s ever made). He’s not just going to call Jeff Sessions and tell him to have the Antitrust Division kill it. No, he’ll just let his magic work on things, sending American bank stocks up and—with some loose talk about withdrawing from NAFTA—send Canadian ones down and let the proxy advisories do his work for him.

Institutional Shareholder Services Inc. told investors in Chicago-based PrivateBancorp Inc. over the weekend that they should vote against the bank’s proposed sale to Toronto-based Canadian Imperial Bank of Commerce. Among other reasons, ISS cited how Canadian bank stocks have dropped recently amid fallout from a run on deposits at Canadian mortgage lender Home Capital Group Inc.

Even the advisers backing the deal have to hold their noses to do it after Trump’s brilliant strategery.

But another advisory firm, Glass Lewis & Co., recommended a “yes” vote, saying that CIBC’s offer for PrivateBancorp was “reasonably sufficient” and that the strategy of a combination remains “largely reasonable.”

The Drop in Canada’s Bank Stocks Is Latest Trouble For This Deal [WSJ]

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