The KBW analysts said the acquisition would make financial sense, but "it may not make strategic sense" because of market overlap and "execution risk" given Union Bank's high cost base. Market reaction to the deal was relatively favorable. While large bank deals have often triggered sell-offs, U.S. Bancorp's stock was up 2.4% at around 12:20 p.m. ET, compared to a 0.5% gain in the KBW Nasdaq Bank Index. But U.S. Bancorp will face challenges with the deal, including the need to resolve a recent consent order at Union Bank and intensifying regulatory scrutiny of big deals. Wells Fargo analyst Mike Mayo expressed concern that the deal will not be approved despite U.S. Bancorp's plans to retain all front-line workers and not to exit any markets. Big banks might face a tougher approval process after President Joe Biden's executive order calling for tougher scrutiny of deals.