The Globe and Mail reports in its Thursday edition that Canadian bank stocks have risen significantly in the past year, but some investors now prefer United States banks, especially regionals, due to lower valuation multiples, and potential benefits from deregulation and M&A activity. The Globe's Shirley Won writes that Middlefield's Rob Lauzon says, "U.S. bank stocks have an easier path to higher loan growth given that the U.S. economy is growing twice as fast as Canada's." Mr. Lauzon says new proposed rules to reduce the cash buffers that U.S. banks must set aside to absorb losses will free up capital for banks to grow their businesses. He says U.S. bank deregulation also favours mergers and there will likely be another wave of them after the midterm elections. He says this sector trades at 11 times forward earnings versus 12 to 13 times historically. However, Canadian banks trade at 15 times forward earnings versus 10 to 12 times historically. Over the past year, the S&P/TSX Composite Banks Index is up more than 50 per cent, including dividends. Mr. Lauzon's fund's core U.S. regional bank plays are First Horizon, whose proposed merger with Toronto-Dominion Bank collapsed in 2023, and Wintrust Financial.