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I thought a buy out from JP Morgan was unlikely because then the new bank would have more than 11% of the countries deposits. Isn't there a deposit thresh hold a bank is not allowed to go past in a merge?
Location: Charlotte,NC, US, North America, Earth, Alpha Quadrant,Milky Way Galaxy
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Quote:
Originally Posted by BrianH1970
They're going through with the Countrywide deal. That's their big deal in question right now. The reason why people are so gung ho with talking about Wachovia and Golden West? Look no further than what happened to Wachovia's CEO because of that deal.
Exactly, Countrywide is even worse of a deal than Goldenwest was for Wach. Like I said at the time, who knew the paper they were holding would be as bad as it is. It's just not US banks, but Intl Banks as well. UBS is getting crushed.
Location: Charlotte,NC, US, North America, Earth, Alpha Quadrant,Milky Way Galaxy
3,770 posts, read 7,544,684 times
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Quote:
Originally Posted by baybook
I thought a buy out from JP Morgan was unlikely because then the new bank would have more than 11% of the countries deposits. Isn't there a deposit thresh hold a bank is not allowed to go past in a merge?
Pretty much that's the major (really major) road block. Wachovia is PRIME for a take over being the stock is almost half what it was less than a year ago.
I thought a buy out from JP Morgan was unlikely because then the new bank would have more than 11% of the countries deposits. Isn't there a deposit thresh hold a bank is not allowed to go past in a merge?
They could divest some and get to 10%, also rumors have it they govt may relax the rule.. But I don't think that will happen. It's one reason why you always have at least 10 Banks to choose from.
Exactly, Countrywide is even worse of a deal than Goldenwest was for Wach. Like I said at the time, who knew the paper they were holding would be as bad as it is. It's just not US banks, but Intl Banks as well. UBS is getting crushed.
I don't see the logic in this argument. Wachovia paid $26 billion, Bank of America is paying $6. Wachovia bought at the Peak of the Housing boom and no idea what was about to happen (well some did, but I digress). Bank of America, fully understands the market and could even Back out or lower the price as it doesn't even close till next month. (In fact Countrywide voters could squash it Thursday during the shareholder vote). It could fail, but the risk is less and the discounted price is hard to pass up. Plus I think the govt and many people want it to happen. I have been following this closely, so I probably should hold my peace.
I think you may see more internation investments in all companies which could drive decision making outside the US, which would be scarier in my opinion.
I think BOA is making a huge mistake with the Countrywide deal. They're opening the bank up to huge mortgage losses as well as the possibility of lawsuits stemming from bad mortgages Countrywide made. Ken Lewis needs to look down Tryon and think of Ken Thompson being shown the door only a few weeks ago. Granted, the Golden West purchase was more expensive, but both acquitions were/are boneheaded moves IMHO.
I don't know in my opinion north carolina sounds like what los angles sounded like 50 years ago . There are more jobs than people! The weather is perfect ! It is cheaper than the north east! The best life is in north carolina . The grass is greenier in north carolina .IT is a paradise you feel like a king in north carolina .
This sounds almost the exact same way people talked about los angeles in the 50's and 60's
It seems you will only have enough jobs too serve few soon . But people are still moving too north carolina in hordes !
It seems northcarolina is near peak . Everything from here will be down hill !
Just in a few years the conditions in north carolina will start changing drastically!
Well everyone talks about how l.a has been a total down hill in the past 50 years .
But i think north carolina sounds way too close too L.A . At first you might have alot of people who have alot of good jobs . But eventually the amount of people coming will become too high and the jobs can no longer support the economy . You will eventually have people who thought they could have a better life end up unemployed and homeless bitter and angry ending up criminally invading the city . You will have more and more immigrants plaguing the city and competing for jobs . More and more people will be struggling and many will lose it all . Eventually many of the new people arriving go from middle class families . Too the homeless and transient people . Than gangs will become more and more prevenlent . You will have roads that don't function and roads that can't support the amount of people moving in . The polution will rise . And eventually many areas will be areas of lots of struggles and unhappiness .
We have seen this happen in los angeles , Than miami and now North Carolina . There are consquences for a temporary soo called paradise .
Last edited by Existtoexit; 06-27-2008 at 06:05 PM..
Location: Some got six month some got one solid. But me and my buddies all got lifetime here
4,555 posts, read 10,403,877 times
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Quote:
Originally Posted by Existtoexit
I don't know in my opinion north carolina sounds like what los angles sounded like 50 years ago . There are more jobs than people! The weather is perfect ! It is cheaper than the north east! The best life is in north carolina . The grass is greenier in north carolina .IT is a paradise you feel like a king in north carolina .
This sounds almost the exact same way people talked about los angeles in the 50's and 60's
It seems you will only have enough jobs too serve few soon . But people people still moving too north carolina in hordes .
Well everyone talks about how l.a has been a total down hill in the past 50 years .
But i think it sounds way too close too L.A . At first you might have alot of people who have alot of good jobs . But eventually the amount of people coming will become too high and the jobs can no longer support the economy . You will eventually have people who thought they could have a better life end up unemployed and homeless bitter and angry ending up criminally invading the city . You will have more and more immigrants plaguing the city and competing for jobs . More and more people will be struggling and many will lose it all . Eventually many of the new people arriving go from middle class families . Too the homeless and transient people . Than gangs will become more and more prevenlent . You will have roads that don't function and roads that can't support the amount of people moving in . The polution will rise . And eventually many areas will be areas of lots of struggles and unhappiness .
We have seen this happen in los angeles , Than miami and now North Carolina . There are consquences for a temporary soo called paradise .
And this has to do with Wachovia and Bank of America because...
And this has to do with Wachovia and Bank of America because...
It has too do with the job market being unstable in north carolina which has too do with wachovia . with a very large amount of people moving too an area that could lose a portion of its job base is extremely detrimental . the results of the corporations losing ground and many people moving too the city will cause the problems i listed ;-) . The results of this is just as important if not more important than the situation its self .
It has too do with the job market being unstable in north carolina which has too do with wachovia . with a very large amount of people moving too an area that could lose a portion of its job base is extremely detrimental . the results of the corporations losing ground and many people moving too the city will cause the problems i listed ;-) . The results of this is just as important if not more important than the situation its self .
Well, aren't you just a little ray of sunshine!! We have about 3 million people to go, before we get to the size of LA. There are plenty of jobs in Charlotte for continued growth. Frankly, I dont see either bank leaving any time soon! All, of course, IMHO.
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