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The Banking Industry Thread (1 Viewer)

Chadstroma

Footballguy
C got into the action and bought Wachovia...

Citigroup Agrees to Buy Wachovia's Banking Business (Update4) By Steve Dickson and David Mildenberg Sept. 29 (Bloomberg) -- Citigroup Inc., the biggest U.S. bank by assets, will acquire banking operations of Wachovia Corp. for about $1.6 billion after shares of the North Carolina lender collapsed under the weight of overdue mortgages. The all-stock deal equals about $1 a share for the Charlotte-based bank, ranked sixth by assets in the U.S. All depositors will be protected, according to the Federal Deposit Insurance Corp., which helped broker the takeover by Citigroup. The New York-based bank plans to cut its own dividend in half and raise $10 billion in capital as it takes on Wachovia's senior and subordinated debt. Wachovia is the latest casualty of a financial crisis that drove Lehman Brothers Holdings Inc. and Washington Mutual Inc. into bankruptcy and led to the hastily arranged rescues of Merrill Lynch & Co. and Bear Stearns Cos. The purchase gives Citigroup about 3,300 branches and offices in 21 states. Wachovia will continue to own the A.G. Edwards Inc. brokerage and the Evergreen mutual-fund family. ```The problem must have occurred last week with their ability to continue to attract and hold deposits after the failure of Washington Mutual,'' said Gary Townsend of Hill- Townsend Capital in Chevy Chase, Maryland. ``On Thursday and Friday they must have had a large run on the bank.'' Wachovia's stock, which finished last week at $10 on the New York Stock Exchange, traded for 95 cents at 9 a.m. in early transactions. It had lost 83 percent in the past two years as of last week. Trading today was halted during regular hours. Citigroup fell 1.4 percent to $19.86 as of 10:19 a.m. Citigroup's Role Citigroup will absorb as much as $42 billion of losses on Wachovia's $312 billion pool of loans, the FDIC said in a statement. The regulator will take on losses beyond that amount in exchange for $12 billion in preferred stock and warrants. ``Of course they are going to raise capital,'' Oppenheimer & Co. analyst Meredith Whitney said in an interview on CNBC. ``I don't know how they absorb $42 billion on the income basis they have.'' Wells Fargo & Co. had also bid for Wachovia, according to the Wall Street Journal. ``Citi needed it more than anybody,'' said Nancy Bush, an independent bank analyst. ``It would have been nice for Wells, but I couldn't see them taking on that chunk of bad debt.'' Citigroup expects $3.7 billion in pre-tax restructuring charges for severance costs over the next four years, the company said in a statement. What's Left The combined company will have about 4,300 U.S. bank offices and more than $600 billion in deposits for a 9.8 percent share of the U.S. banking market. Citigroup's total deposits globally will be $1.3 trillion, the bank said, or about $350 billion more than JPMorgan Chase & Co. Wachovia will be left with its retail brokerage and Evergreen asset management units. The brokerage has about 14,600 financial advisers and more than $1 trillion under management, making it third in the U.S. behind Merrill Lynch & Co. and Citigroup's Smith Barney unit. The FDIC said that it won't have to tap its insurance fund, something the agency also avoided in the WaMu failure last week. Keeping the FDIC's fund healthy has been a priority for U.S. regulators because its $100,000 insurance on deposits helps keep small depositors from panicking when a bank's health is questioned. Whitney said today there was ``no doubt'' in her mind that there had been a run on Wachovia. Customer Relations Wachovia CEO Robert Steel sent a memo to the staff last week affirming that the company was sound and more diversified than Washington Mutual after the lender failed. The memo, according to a copy obtained by Bloomberg, included a set of questions and answers for employees who might have to answer queries from worried customers, such as ``Does all the recent news put Wachovia at risk?'' and ``How is Wachovia different'' from Lehman, Bear Stearns and WaMu. Louise Pitt, a credit analyst at Goldman Sachs Group Inc., wrote Friday that Wachovia may have been facing the possibility of a ``silent'' run on deposits similar to that confronted by WaMu, in which customers fearful of a bank failure withdraw their money in unusually large numbers. WaMu became ``unsound'' after customers withdrew $16.7 billion since Sept. 16, the Office of Thrift Supervision said when it seized WaMu. The FDIC and Wachovia didn't say today whether the bank suffered similar withdrawals. Loan Defaults Wachovia reported $9.7 billion of losses in the first half of 2008. The slide toward collapse began when the bank paid more than $24 billion in October 2006 for Golden West Financial Corp., the California lender that specialized in option-ARM home mortgages. The bank holds about $122 billion of the adjustable- rate home loans. Kennedy Thompson, the chief executive officer at the time, later admitted that the purchase at the height of the real estate boom was ill-timed. Wachovia is the largest holder of option ARMs, ahead of Washington Mutual, the Seattle-based lender that collapsed last week. The loans are prone to default because they allow borrowers to skip some interest payments and add them to the principal. The terms backfired when housing markets weakened, leaving borrowers with loans bigger than the value of their home. Prices in California during August fell 41 percent from year-earlier levels. Pressure From WaMu Pressure on the bank to make a deal grew last week when JPMorgan Chief Executive Officer Jamie Dimon bought WaMu and then announced writedowns on loans similar to those held by Wachovia. ``Jamie Dimon threw gas on the fire when JPMorgan built in losses of 25 percent on the Washington Mutual option ARMs,'' Bush said yesterday. Steel ``has put his losses at 12 percent, but that was a couple of weeks ago and the situation has gotten more dire since then.'' Analysts at Fitch Ratings predict default rates on such loans packaged as securities may reach 45 percent. ``Bob Steel missed the opportunity to raise more equity,'' Townsend said. ``What we heard from him from the beginning is that they didn't need to raise more equity. That clearly wasn't the case.'' The transaction is likely to hurt Charlotte, where Wachovia is the largest private employer with about 20,000 workers, said Michael Nix, portfolio manager at Greenwood Capital Associates LLC in Greenwood, South Carolina. The bank said today in a statement that the corporate headquarters will stay in Charlotte. ``It's a bad, bad thing for Charlotte,'' Nix said. ``The only good thing about this is that we really don't know who else is left to have similar problems. The big guys are done.''
My best guess is National City is next to be the highlight of the media, have a run on deposits and either find a buyer in a quick emergency or be seized and sold. Most likely buyer? Prob Wells Fargo.Edited to change the title of the thread to follow more broadly the industry changes and info.
 
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How many banks are going to survive here in total? 3?

Bank of America

JP Morgan Chase

Citigroup

Anyone else?

 
Aren't these mergers the exact opposite of what we want to happen? Aren't a bunch of new entities being created now that are "too big to fail"?

 
Aren't these mergers the exact opposite of what we want to happen? Aren't a bunch of new entities being created now that are "too big to fail"?
Yep! And not only that we are seeing the elimination of competition. However, I have hopes that smaller regional, more conservative banks that in most cases seem to be coming out well in all of this can keep competitive pressures on the big guys.
 
Chadstroma said:
guru_007 said:
How many banks are going to survive here in total? 3?Bank of AmericaJP Morgan ChaseCitigroupAnyone else?
Wells Fargo and small regional banks and community banks.
add US Bancorp
Yea, they will survive. A few regional banks will survive and even thrive but they will not be on the same level of the big 4 banks that we will have after this being BAC, JPM, C and WFC. I just do not put US Bancorp on that same level. They are more like the National City, Fifth Third, Keycorp, Regions, etc.
 
Aren't these mergers the exact opposite of what we want to happen? Aren't a bunch of new entities being created now that are "too big to fail"?
Yep! And not only that we are seeing the elimination of competition. However, I have hopes that smaller regional, more conservative banks that in most cases seem to be coming out well in all of this can keep competitive pressures on the big guys.
I think over the next few years we will see a large migration of consumers from C, JPM, and BAC to smaller regionals, community banks, and credit unions. They simply do no have the customer friendly corporate cultures or focus. These banks will excel in commercial and wealth management where they really get excited about things but I think they will bleed your average joe customers who will seek smaller banks that are all about the consumer. WaMu and Wachovia were the two large banks that had the customer focus. Too bad for them they either did a lot of bad lending or bought companies that did and are now gone.
 
I agree that NCC will be the next one down, they are life support as is. Fifth Third seems to be dropping like a brick today.

 
Did we really need all these banks?

A big 3 or 4 + dozens of small regional banks would be fine with me.

 
I agree that NCC will be the next one down, they are life support as is. Fifth Third seems to be dropping like a brick today.
From what I have read National City is in trouble. In a few years we will see some of the regional banks rise up and become larger with a more national presence as there is less competition amongst the big players.
 
The question I have is, which NON financial industry giant goes under as a result of the credit problem first - if any. Any candidates?

 
The question I have is, which NON financial industry giant goes under as a result of the credit problem first - if any. Any candidates?
Hint:goodposting:
I was thinking that, based on what I've read here and other places, but I didn't want to lead the question.But since you bring it up....GM?If so will the general public be able to connect the dots between the credit crunch and GM's failure?
 
My best guess is National City is next to be the highlight of the media, have a run on deposits and either find a buyer in a quick emergency or be seized and sold. Most likely buyer? Prob Wells Fargo.
I don't see why they would go after National City. Wachovia has been the only bank so far that I think would have bolstered their position.
 
The question I have is, which NON financial industry giant goes under as a result of the credit problem first - if any. Any candidates?
Hint:excited:
I was thinking that, based on what I've read here and other places, but I didn't want to lead the question.But since you bring it up....GM?If so will the general public be able to connect the dots between the credit crunch and GM's failure?
Didnt they just get $25 billion? That should hold them for some time.
 
The question I have is, which NON financial industry giant goes under as a result of the credit problem first - if any. Any candidates?
Hint:excited:
I was thinking that, based on what I've read here and other places, but I didn't want to lead the question.But since you bring it up....GM?If so will the general public be able to connect the dots between the credit crunch and GM's failure?
Didnt they just get $25 billion? That should hold them for some time.
You'd think that, wouldn't you...
 
The question I have is, which NON financial industry giant goes under as a result of the credit problem first - if any. Any candidates?
Hint:wub:
Unions that took on retirees health and pension plans in contracts of the the past few years such as the UAW or the Steelworkers union.
I think you might be selling people on nationwide financial collapse with that one.What's to stop them from having a kegger and raising everyone's dues to make up the losses?
 
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How many banks are going to survive here in total? 3?

Bank of America

JP Morgan Chase

Citigroup

Anyone else?
Consolidation isn't really a problem towards competition at the moment. Banking is global. There are a lot of international banks that already do operate here and will fill the void. RBS, UBS, Credit Suisse, ING, HSBC, Santander, ICBC and others. Many of these already own smaller retail brands in the U.S. For instance, I believe RBS owns Citizen's. If the market demands it, these guys will come into U.S. banking heavier. It also wouldn't surprise me to see a few of these step in and take a larger stake in the U.S. market at bargain basement prices. But everyone has capital constraints at the moment. I also doubt the big 3 will be allowed to swallow much more - I believe BOA was already told they can't acquire more retail share. I would guess with Chase and Citi's acquisitions this week, they get the same message. From here on out, if they want to get bigger, it's going to have to be organically or in small chunks in areas they have no or little presence....though I'm not sure if any have real market holes any more.

 
How many banks are going to survive here in total? 3?

Bank of America

JP Morgan Chase

Citigroup

Anyone else?
Consolidation isn't really a problem towards competition at the moment. Banking is global. There are a lot of international banks that already do operate here and will fill the void. RBS, UBS, Credit Suisse, ING, HSBC, Santander, ICBC and others. Many of these already own smaller retail brands in the U.S. For instance, I believe RBS owns Citizen's. If the market demands it, these guys will come into U.S. banking heavier. It also wouldn't surprise me to see a few of these step in and take a larger stake in the U.S. market at bargain basement prices. But everyone has capital constraints at the moment. I also doubt the big 3 will be allowed to swallow much more - I believe BOA was already told they can't acquire more retail share. I would guess with Chase and Citi's acquisitions this week, they get the same message. From here on out, if they want to get bigger, it's going to have to be organically or in small chunks in areas they have no or little presence....though I'm not sure if any have real market holes any more.
Now with ATMs in Tierra Del Fuego and Tasmania - we're everywhere you want to be.
 
I agree that NCC will be the next one down, they are life support as is. Fifth Third seems to be dropping like a brick today.
I honestly do not know how Fifth Third has managed to stay out of cross hairs so far. In fact, they were, along with KeyCorp and US Bancorp rumored to be the primary bidders for National City a few months back which just blew my mind. It made no sense to me. National City got rapped today in the market and with all the other concerns along with all the failures/mergers, I have to believe they will see a run on deposits. It took only 10 days of deposit withdrawals to down WaMu. I think the clock is ticking on National City. They have to be looking for buyers but the problem is that now unless someone really wants them potential bidders would likely be more inclined to wait and see- by gambling that a run on deposits happens and the regulators step in and seize it in order to turn and sell it on for chump change. They could get a decent retail bank for nothing.

I have to think that Wells Fargo will be looking at National City and Fifth Third for 'everything must go!' type of sales. Either would help Wells break out of the west coast and start to challenge the big three's retail operations.

 
Did we really need all these banks?A big 3 or 4 + dozens of small regional banks would be fine with me.
Competition is always good. The practice of charging fees has been checked and largely decreased over the years because of competition. The good news is that competition is still there although it will be a drastically different landscape. Most of the true regional banks have been bought up to build the big 3 or 4. A decent small regional bank (An example in California would be Union Bank of California or in Chicago MB Bank) could really change gears and focus on being consumer based retail banks and steal tons of market share from Chase, Citi, and BofA. Community banks ought to be aggresive in stealing customers away from these banks (but the problem is most tend to not have a sales minded culture) to grow organically. Also, these regionals and community banks should be on the hunt for new locations. Depending on the previous real estate deals, they potentially can pick up ready made bank branches and save tons of cash in establishing a de novo branch.A smart regional or community bank should look at this as an enourmous opportunity to grow their bank. Credit Unions will continue to grow as well to feel the void. Finally, there are tons of foreign banks that have some form of operations in the U.S. (examples would be RBS with their Charter One in the Chicago area and Citizens in the east coast or HSBC that has consumer lending and credit card operations here). Barclays, Santander, Fortis, UBS, Mitsubishi, etc are out there and are quite large. It is possible they come in and buy a struggling bank like National City. The American banking system is still fractured but now it is just shaping up to be the big 4 and then tons of small community banks with nothing much in the middle.
 
How many banks are going to survive here in total? 3?

Bank of America

JP Morgan Chase

Citigroup

Anyone else?
Consolidation isn't really a problem towards competition at the moment. Banking is global. There are a lot of international banks that already do operate here and will fill the void. RBS, UBS, Credit Suisse, ING, HSBC, Santander, ICBC and others. Many of these already own smaller retail brands in the U.S. For instance, I believe RBS owns Citizen's. If the market demands it, these guys will come into U.S. banking heavier. It also wouldn't surprise me to see a few of these step in and take a larger stake in the U.S. market at bargain basement prices. But everyone has capital constraints at the moment. I also doubt the big 3 will be allowed to swallow much more - I believe BOA was already told they can't acquire more retail share. I would guess with Chase and Citi's acquisitions this week, they get the same message. From here on out, if they want to get bigger, it's going to have to be organically or in small chunks in areas they have no or little presence....though I'm not sure if any have real market holes any more.
I believe the monopoloy cap is 10% retail checking share (in dollars) and it doesn't matter if it's through acquistion or organic gowth, the cap is 10%...so I think all three are at or near that cap now. That's why Merrill was so appealling to BOA (it did't count against the cap).
 
I agree that NCC will be the next one down, they are life support as is. Fifth Third seems to be dropping like a brick today.
From what I have read National City is in trouble. In a few years we will see some of the regional banks rise up and become larger with a more national presence as there is less competition amongst the big players.
They will seek each other out and merge but it will take a long time to have one come anywhere near challenging the big 4. Without actually looking at the numbers to make sure I am not being overly dramatic in saying this... but I think you would have to merge the 5th through 10th largest banks by assets all together and it would still be junior to the big 4. WaMu and Wachovia were 6th and 5th largest banks in the U.S. and now they just swelled JPM and C's retail banking and they themselves were far off from being anywhere near as big as the big 4. As an another example, IRRC, if you had merged WaMu and Wachovia it would have still be the 5th largest bank.
 
My best guess is National City is next to be the highlight of the media, have a run on deposits and either find a buyer in a quick emergency or be seized and sold. Most likely buyer? Prob Wells Fargo.
I don't see why they would go after National City. Wachovia has been the only bank so far that I think would have bolstered their position.
Wachovia would have been a good move for Wells but they have always been very disciplined and do not make deals just to make deals. I think the chances are high that the regulators will hand National City on a silver plater similiar to how WaMu was served up to JPM. If so, Wells would be dumb to pass.
 
How many banks are going to survive here in total? 3?

Bank of America

JP Morgan Chase

Citigroup

Anyone else?
Consolidation isn't really a problem towards competition at the moment. Banking is global. There are a lot of international banks that already do operate here and will fill the void. RBS, UBS, Credit Suisse, ING, HSBC, Santander, ICBC and others. Many of these already own smaller retail brands in the U.S. For instance, I believe RBS owns Citizen's. If the market demands it, these guys will come into U.S. banking heavier. It also wouldn't surprise me to see a few of these step in and take a larger stake in the U.S. market at bargain basement prices. But everyone has capital constraints at the moment. I also doubt the big 3 will be allowed to swallow much more - I believe BOA was already told they can't acquire more retail share. I would guess with Chase and Citi's acquisitions this week, they get the same message. From here on out, if they want to get bigger, it's going to have to be organically or in small chunks in areas they have no or little presence....though I'm not sure if any have real market holes any more.
:hot: BofA really has no holes but they will not be allowed to buy any more anyways.

JPM really filled in with WaMu specially on the west coast. I seem to remember that they are kind of light in the south east part of the country and other than Florida and Atlanta, WaMu did not help much there.

C was a fractured and horrible mess of a retail bank before they bought Cal Fed and entered the California market with a decent presence. Wachovia will help fill that in more and help them challenge JPM (WaMu), BofA, and Wells in California with the World Savings that Wachovia bought (and ended up killing them). Wachovia was huge in the South East side of the country with some scattered branches from World Savings. They also made a successful entry into Texas a little bit ago. I believe that C will still be very light in the central part of the country.

 
How many banks are going to survive here in total? 3?Bank of AmericaJP Morgan ChaseCitigroupAnyone else?
Wells Fargo and small regional banks and community banks.
add US Bancorp
Not sure if we're big enough to be in this list, but PNC is doing great.
PNC is doing outstanding. They sold their mortgage business to WaMu about 8 years ago and really moved forward with conservative underwriting and not gourging itself on mortgages. Their books are prob the best out there for any bank of any real size. But yea, they are not nearly big enough to be on the list. However, they are in a great position to be a buyer if they do not mind taking on some of the crap loans that is sinking another bank.
 
How many banks are going to survive here in total? 3?Bank of AmericaJP Morgan ChaseCitigroupAnyone else?
Wells Fargo and small regional banks and community banks.
add US Bancorp
Not sure if we're big enough to be in this list, but PNC is doing great.
PNC is doing outstanding. They sold their mortgage business to WaMu about 8 years ago and really moved forward with conservative underwriting and not gourging itself on mortgages. Their books are prob the best out there for any bank of any real size. But yea, they are not nearly big enough to be on the list. However, they are in a great position to be a buyer if they do not mind taking on some of the crap loans that is sinking another bank.
I remember getting the email announcing that deal (mortgages to WaMu) and being surprised. Wow, 8yrs flew by...In Rohr we trust. :confused:
 
Bank consolidations raise specter of higher fees

Monday September 29, 6:43 pm ET

By Dave Carpenter and Sara Lepro, AP Business Writers

Citi takeover of Wachovia, other bank consolidations raise specter of higher fees

NEW YORK (AP) -- The sale of Wachovia's deposits and other assets to Citigroup on Monday leaves the nation with three superbanks, reshaping the U.S. banking landscape in the midst of unprecedented financial upheaval.

For customers of those institutions -- Bank of America, Citigroup and JPMorgan Chase -- the consolidation may result in higher fees on everything from checking accounts to bounced checks and overdrafts, and lower interest-rate yields on deposit accounts, banking experts said.

Loan availability also remains in question in the near term, particularly after congressional defeat of the government's proposed financial bailout plan.

"The larger the bank is, theoretically the more power they have to set pricing and other policies," said Nancy Atkinson, senior analyst at Aite Group, a financial services research firm. "I expect we'll start to see free checking accounts start to disappear, and rates on overdrafts could go up. Savings rates could drop."

But the news isn't all bad. Atkinson and others are convinced that the approximately 8,500 remaining regional and community banks nationwide will continue to play a role, providing consumers with more options.

"If you are a customer of the Big Three, you're probably going to see some increased fees because these banks have increased their market shares -- dramatically in some instances," said Tim Yeager, associate professor of finance at the University of Arkansas and a former economist at the Federal Reserve Bank of St. Louis. "From the community bank point of view, I don't think you're going to see much change."

More customer service glitches can be expected as Citigroup Inc. absorbs most of Wachovia Corp. and JPMorgan Chase & Co. consolidates the branch network of the nation's largest savings and loan, Washington Mutual Inc., according to Michael Pagano, finance professor at the Villanova University School of Business. That could range from delays or inattentiveness to confusion over fees as two systems are integrated.

However, he was not overly concerned about the risk of much higher costs from a quasi-monopoly created by the recent bank purchases.

"If we had five banks in the whole country, I'd be worried about market power," Pagano said. "But there are more than 8,000 banks. And even credit unions are a viable alternative, from large ones to small mom-and-pops with $10 million in assets."

Wachovia, headquartered in Charlotte, N.C., on Monday became the latest casualty of the widening global financial crisis after Citigroup agreed to buy its banking operations for about $2.16 billion in a deal brokered by federal regulators.

The deal greatly expands New York-based Citigroup's retail franchise -- giving it a total of more than 4,300 U.S. branches and $600 billion in deposits.

But it comes at a cost: Citigroup Inc. said it will slash its quarterly dividend in half to 16 cents. It also will dilute the value of existing shares by selling $10 billion in common stock to shore up its capital position. Citigroup shares closed down $2.40, or 11.9 percent, to $17.75 on Monday.

In addition to assuming $53 billion worth of debt, Citigroup will absorb up to $42 billion of losses from Wachovia's $312 billion loan portfolio, with the Federal Deposit Insurance Corp. agreeing to cover any remaining losses. An estimate for that figure was not available. Citigroup also will issue $12 billion in preferred stock and warrants to the FDIC.

Charlotte, N.C.-based Bank of America made a significant acquisition this month, scooping up investment bank Merrill Lynch & Co. for $50 billion in stock.

Essentially, Citigroup, Bank of America and JPMorgan, which acquired the investment bank Bear Stearns Cos. in March, now own about a third of the banking market, said Anant Sundaram, professor of finance at the Tuck School of Business at Dartmouth College.

"That is a level of concentration that we have not seen in the banking industry," he said.

Now that a deal for Wachovia is complete, the most troubled of the nation's largest financial institutions have been dealt with. However, the FDIC estimated there were 117 banks and thrifts in trouble during the second quarter, the most since 2003, and probably more during the third quarter. Many mid-size, regional banks, such as National City Corp., continue to suffer under the weight of losses tied to bad mortgage debt.

On Monday, lawmakers voted down a proposed $700 billion rescue package for ailing financial institutions, casting doubt on a quick fix to the industry's woes, and raising new questions about just how banks are going to deal with all this bad debt.

"If there is any further consolidation, it is not clear who the large buyers are going to be at this point, unless they are foreign," Sundaram said. "It's not clear to me that the three large banks that are remaining have the ability to acquire dozens of regionals."

The markets' meltdown and collapse of financial giants have prompted widespread jitters about the safety of bank funds.

Consumers can take solace, however, in FDIC insurance that safeguards up to $100,000 per account and covers IRA accounts up to $250,000.

"Your money is safe in your local bank," said Paul Merski, chief economist for the Independent Community Bankers of America. "The real trouble has been in the investment community."
This article reminded me that WaMu and Wachovia were the two big leaders of "Free" Checking accounts without requirement. It will be interesting to see if this is another factor to fuel the growth of the regionals and community banks that survive. It will be a huge mistake by JPM and C if they do not grandfather in the products of the banks they just ate. If they try to convert them to their products, they will bleed customers.

I was in Cali when the deal was announced and saw tons of new customers leaving Cal Fed when C bought them even before anything really changed. I was not in California for actual deal. I do not know what they did and did not do but I do remember my friends back in Cali at WaMu telling me they were snapping up tons of new customers.

 
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my bank. worst customer service ever. They deserved to die.
Which one? Both WaMu and Wachovia were in Atlanta. Oddly enough, both were consistently rated very highly in customer service vs their peers. Not sure if that says alot about them or their peers.
 
My best guess is National City is next to be the highlight of the media, have a run on deposits and either find a buyer in a quick emergency or be seized and sold. Most likely buyer? Prob Wells Fargo.
I don't see why they would go after National City. Wachovia has been the only bank so far that I think would have bolstered their position.
Wachovia would have been a good move for Wells but they have always been very disciplined and do not make deals just to make deals. I think the chances are high that the regulators will hand National City on a silver plater similiar to how WaMu was served up to JPM. If so, Wells would be dumb to pass.
Months ago it was rumored that we were looking at NCC, I wouldn't be surprised if it happened.
 
reg said:
My best guess is National City is next to be the highlight of the media, have a run on deposits and either find a buyer in a quick emergency or be seized and sold. Most likely buyer? Prob Wells Fargo.
I don't see why they would go after National City. Wachovia has been the only bank so far that I think would have bolstered their position.
Wachovia would have been a good move for Wells but they have always been very disciplined and do not make deals just to make deals. I think the chances are high that the regulators will hand National City on a silver plater similiar to how WaMu was served up to JPM. If so, Wells would be dumb to pass.
Months ago it was rumored that we were looking at NCC, I wouldn't be surprised if it happened.
I think Wells will be taking a hard look at just about anyone that comes up for sale. It just does not mean that they will get emotional and try to force a dumb sale just to keep up with the Jones'. They have always been very disciplined and very deliberate with their acquisitions. Geographically, the only two areas that are desirable in banking are it's branches in Chicago and Florida but the acquisition could be a good first step in breaking out of the west and looking for more additions in the south east and eastern seaboard to eventually become the next truly national bank.
 
TD Bank is a somewhat smaller bank that IMO will see growth. TD bought Commerce Bank and Commerce is fantastic on the retail side. Their interest rates on savings accounts, IRAs and CDs are pretty terrible, but they have very low fees, tons of locations and very convenient hours. They pretty much dominate New Jersey, DE and eastern PA.

 
TD Bank is a somewhat smaller bank that IMO will see growth. TD bought Commerce Bank and Commerce is fantastic on the retail side. Their interest rates on savings accounts, IRAs and CDs are pretty terrible, but they have very low fees, tons of locations and very convenient hours. They pretty much dominate New Jersey, DE and eastern PA.
Plus Canadian can do power!
 

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