MOE-Speak Picks Up, And So Does The Parsing.(mergers of equals)

When operating conditions for banking companies start cycling down, talk among executives about mergers of equals starts cycling up.

Bankers are drawn to the intrinsic logic of adding scale and cutting costs in a no-premium transaction, especially when margins are thin, loan quality is deteriorating, and credit markets are in turmoil.

But as discussions between would-be partners progress, the usual truth emerges - one partner likely would end up being just a little bit more equal than the other. It's at that point that the lesser of the two equals often starts backing away from the table.

So as bankers increasingly express interest in such transactions - including recent ruminations by executives at National City Corp. and BB&T Corp. - many investment bankers are skeptical a surge in such deals is at hand, and offer other possible motivations for the buzz.

"People are exploring it more and more," said Andrew M. Senchak, a vice chairman and the president KBW Inc., but most of those doing the talking are primarily sending a signal that they are not for sale. After all, "nobody who is thinking he could lose control is talking about a merger of equals."

David Head, a co-head …