Chairman and CEO RichardDavis said the bank is continuing to work through a federal consent order but couldnot estimate when it would be lifted.
In October2015, the bank enteredinto a consent order with the OCC over deficiencies in its Bank Secrecy Act/anti-moneylaundering compliance program. During the bank's July 15 second-quarter earningscall, the chief executive said it was too early to estimate when regulatorswould remove the consent order and allow U.S. Bancorp to engage in whole-bank transactionsor branch deals.
"Ihave no idea what the exit time will be, but we're working closely with our regulatorsto make sure that we have permissions — particularly to be released from any partof the consent order — first, if that's helpful to us to get back into traditionalM&A business," Davis said on the call.
He addedthat the consent order does not preclude the bank from participating in M&Ain certain areas, such as credit card portfolios or mortgage business activities.And Davis said the consent order has had minimal impact since there has not beena bank or branch deal that has interested the bank.
Later,an analyst asked whether the deal prevented the bank from opening new loan productionoffices in new markets, to which Davis responded that there was no impairment. However,he said the bank is already in all the markets it wants to be and has no plans fornew offices.