Merger arbitrage traders were expecting hiccups in Toronto-Dominion Bank's proposed takeover of First Horizon, but they were unprepared for its cancellation.

The companies cited an inability to secure regulatory approvals after postponing multiple times a closing that had been originally expected last fall.

The hedge fund added a new small long position in the mortgage software company, according to a copy of its quarterly letter seen by Bloomberg.

The parties responded to the Federal Trade Commission's court filing that sought an injunction to halt their merger pending an internal adjudication.

Other positions are being eliminated nationwide, with just 50 to 60 people remaining to manage the company's mortgage servicing rights.

Forty mortgage professionals located in California have transitioned to the San Diego-based lender, including processors, transaction coordinators and loan officers.

A "large number of originators" from McLean Mortgage have joined the California-based lender.

With the acquisition, the Lake City, Florida-based community bank will nab a consumer-direct platform and expand its footprint in the Midwest.

Banks could be in for a long, slow trickle of bank failures and consolidation in the coming months and years, particularly if inflation persists and interest rates keep rising. A downturn in commercial real estate could add to banks' problems.

Thimble, founded in 2016, provides insurance "in minutes" to a plethora of industries including pet, beauty and cleaning services through its mobile app, website or over the phone.