The after effects of financial downturn led to a static situation in the bank deal scenario for the previous two years with some dealers mulling over expansion through acquisition and now that they are stirred up.

First Niagara Financial Group would become one of the country’s first twenty five major banks with its proposal to acquire bank shares in the form of stock and cash of NewAlliance for $1.5 billion. This rekindles the anticipation of integration in the market.

John Chrin who was formerly a investment banker in the financial services sector, now a teacher in Lehigh University said that this deal would mark a positive beginning in the bank deals though would not bring about a huge change.

The small and medium sized bank’s officials are eagerly looking forward to resurgence of the bank deals for various reasons such as the small time lenders who are in crisis do not have substantial networking across the country through its branches and their lacklustre credit portfolio also fails to trigger a deal initiative.

The banks are in a good form now with a clarity over the issues thronging them and with huge capital worth billions of dollars raised over a period of six months now which was not so before this period. Also now the number of loan defaulters is going down making the bankers believe that the good times are on the way.

An analyst of banking segment associated with Keffe Bruyette & Woods, Mr Chris McGratty said that the stress on the profits earned is on the rise thereby making a merger with a mighty competitor a better option for survival.

Though there were takeovers by major banks of small players happening for some time now , the deal made by First Niagara is touted to be the largest agreement made ever since the financial downturn that started in 2008.