Bank of America Corp. chief executive Ken Lewis, known for his appetite for big bank deals, on Thursday said current turmoil in the financial services industry will spur more bank mergers and acquisitions. "I believe this downturn will accelerate consolidation in the banking industry across geographies and in the financial services industry across product and market segments," Lewis said in prepared remarks for the commencement ceremony at New York University's Stern School of Business. Consolidation across geographic regions will lead to "stronger, more diverse and more efficient institutions," he said. "Monoline" companies that specialize in just one product also are takeover candidates because they can't fall back on other businesses if their speciality hits hard times, he added. Bank of America is in the midst of a takeover of Countrywide Financial Corp., the struggling mortgage lender. The bank has said the deal is "on track," but analysts have wondered if the deal will fall apart or be renegotiated as Countrywide's finances deteriorate. A spokesman declined to comment on whether Lewis' speech indicated more dealmaking was in the works for the Charlotte bank. Bank of America, the nation's No. 1 bank by market value, was formed by scores of big deals over the past three decades. Additional bank buyouts would be difficult, though, because it's up against a 10 percent cap on total deposits. Wachovia Corp., Charlotte's other big ...
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