Scotiabank Secures U.S. Federal Reserve Approval for KeyCorp Stake Expansion
The Canadian bank moves forward with plans to increase its ownership in the U.S. regional lender to 14.99%, reinforcing its North American growth strategy.
- The U.S. Federal Reserve approved Scotiabank's application to increase its stake in KeyCorp from 4.9% to 14.99%.
- The $2.8 billion investment will make Scotiabank the largest shareholder in KeyCorp, a regional bank based in Cleveland, Ohio.
- KeyCorp operates in 15 states with approximately 1,000 branches offering commercial and retail banking services.
- Scotiabank's CEO Scott Thomson described the move as part of a broader strategy to shift focus from developing markets to developed markets, particularly in North America.
- The investment also allows Scotiabank to appoint two directors to KeyCorp's board, signaling deeper collaboration opportunities between the two institutions.
The Globe and Mail 
American Banker 
