Welcome to the Morning Meeting, a recap of news on deals and deal makers from around the world.
Canadian banks open their wallets to U.S. companies
Having already expanded south of the border, often through acquisitions, some of Canada's biggest banks see potential in lending to U.S. businesses that can't borrow because there's little credit available. The only risk now is determining who can't get money because they aren't worthy of a loan, and who has been shut out of tight credit markets. Read the whole story here.
Merger arbitrage funds add capital
Merger arbitrage funds are the latest group to think that a global recovery in M&A activity may be on the horizon. Investors have recently put money back into these specialty funds that try to profit from the spread between a target group's share price after a takeover announcement and the price when a deal closes. Read the whole story here.
European stress tests were a slap on the wrist
There was a lot of relief after only seven banks out of 91 failed the European stress tests, but people who reviewed the tests closely say the bar might have been set far too low. For instance, the worst-case scenario had stagnant growth, but what if the euro zone economy actually shrinks in the coming years? Brian Milner likens the tests to exams written by star athletes at American colleges: Spell both your first and last names right and get a pass in English 101. Read the whole story here.
Canada's new sanctions on Iran target banks and oil companies
The Canadian government is expected to announce tough new sanctions on Iran this morning to follow the lead of its Western allies who worry about the country's nuclear capabilities. The measures will include a ban on any new Canadian investment in Iran's oil and gas sector. Iranian banks will also be barred from opening branches in Canada and Canadian banks will not be able to set up operations in Iran. Read the whole story here.