MILAN (Reuters Breakingviews) - STARS ALIGNED. Julius Baer can go back on the M&A prowl. The Swiss financial watchdog has scrapped a ban on large acquisitions imposed because of severe anti-money-laundering failings, the wealth manager said on Wednesday. The decision comes at a good time for Julius Baer. The bank has nearly 1 billion Swiss francs in excess capital before hitting its self-imposed Common Equity Tier 1 floor of 11%. It’s also richly valued. An 85% rally in its shares over the past 12 months has boosted its market capitalisation to 14 billion Swiss francs. At 3.5 times its tangible book, Julius Baer is valued at more than three times Swiss rivals UBS and Credit Suisse. Boss Philipp Rickenbacher could use the bank’s expanded equity or borrow on the market to buy a sizable target, like Geneva bank Edmond de Rothschild or $2 billion Swiss-listed EFG International. The only caveat is that it should not create another onerous asset clean-up. (By Lisa Jucca)