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What do you believe would happen to the area, or how do you think Charlotte would handle such a tradegy? I mean, there is still Bank of America but we are still talking about 20,000 jobs here. The whole situation has really been bothering me lately since I'll be only moving to Charlotte here in a couple of weeks and this just makes me sad...
If a mom and pop business fails because bad decisions are made, it fails, and the CEO is out without a nickle, and the world continues to turn.
If a big business fails because bad decisions were made, it fails, and the CEO is out with many many millions in a severance package, then the government steps in to reach deep into my pockets to prop them up for a few years?
Location: Charlotte,NC, US, North America, Earth, Alpha Quadrant,Milky Way Galaxy
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Quote:
Originally Posted by Asheville Native
If a mom and pop business fails because bad decisions are made, it fails, and the CEO is out without a nickle, and the world continues to turn.
If a big business fails because bad decisions were made, it fails, and the CEO is out with many many millions in a severance package, then the government steps in to reach deep into my pockets to prop them up for a few years?
The difference is the very upper level mgmt negotiate and secure their exit strategy before their very first day on the job. They cover the run out of town exit scenario pretty well. The average jane or john doe doesn't do that (but I argue you can if you're creative) or feels they can't do that (and they probably can't if you're in a commodity job). Right or wrong, it is what it is.
This is important. Wachovia is not going to fail. Wachovia may be bought, but Wachovia is not going to fail. The biggest risk is people reading garbage like these threads and actually thinking their money is at risk and then there being a massive run on the bank for people to pull the money out and stick it in their mattresses. Even if that were to happen, Wachovia has plenty of liquidity. A bank run would further depress the stock and then there would be a high degree of likelihood that Wachovia would be purchased.
Now, about the 20,000 jobs. Most of the jobs will not go away. If it is the Spanish bank, Charlotte will be the U.S. headquarters. There will be a U.S. CEO, COO, CFO and every other upper level management position imaginable. If it is Citi, the very top level of executives will go away. Investment banking will be completely altered, but probably not eliminated totally in Charlotte. Citi might even want to keep the trading floor open here to add further redundancy to their system in the event of computer or power breaches. With both Citi and Wells Fargo, there will be a considerable presence in Charlotte due to the lower costs here.
I'm not saying that there won't be major pain in Charlotte if Wachovia is sold - there will be. The sky will not fall, however.
Herd mentality is a powerful and dangerous thing. Gas gets a little tight, the news crews start rolling from the stations and bam! everyone is filling up every tank in sight including their cans for the lawn mowers. Guess what happens - we run out of gas. The best thing for Wachovia is for everyone to stand behind them while this thing works its way through.
This is important. Wachovia is not going to fail. Wachovia may be bought, but Wachovia is not going to fail. The biggest risk is people reading garbage like these threads and actually thinking their money is at risk and then there being a massive run on the bank for people to pull the money out and stick it in their mattresses. Even if that were to happen, Wachovia has plenty of liquidity. A bank run would further depress the stock and then there would be a high degree of likelihood that Wachovia would be purchased.
Now, about the 20,000 jobs. Most of the jobs will not go away. If it is the Spanish bank, Charlotte will be the U.S. headquarters. There will be a U.S. CEO, COO, CFO and every other upper level management position imaginable. If it is Citi, the very top level of executives will go away. Investment banking will be completely altered, but probably not eliminated totally in Charlotte. Citi might even want to keep the trading floor open here to add further redundancy to their system in the event of computer or power breaches. With both Citi and Wells Fargo, there will be a considerable presence in Charlotte due to the lower costs here.
I'm not saying that there won't be major pain in Charlotte if Wachovia is sold - there will be. The sky will not fall, however.
Herd mentality is a powerful and dangerous thing. Gas gets a little tight, the news crews start rolling from the stations and bam! everyone is filling up every tank in sight including their cans for the lawn mowers. Guess what happens - we run out of gas. The best thing for Wachovia is for everyone to stand behind them while this thing works its way through.
GOD BLESS YOU! This is what I've been trying to say for weeks, but some people are just determined to spin this thing as a catastrophe.
Well, I agree, depositors are safe. People's money is safe. It is insured and, playing the devil's advocate, even if the bank fails, the money is safe.
Employee jobs, on the other hand, not quite so sure of. Wells Fargo already had (note the keyword) a presence here for a mortgage operations site. They have already (within 5 years) closed the two divisions that were here in Fort Mill and sent them home to their previous HQ. All they have here now is Loss Mit, Foreclosures and Reverse Mortgages. Not quite sure that they WANT to be in Charlotte, so, I am thinking that most (except securities) businesses will be absorbed in their other locations.
Citi...well, don't know much about them. Their HQ is famously in NYC and their mortgage division is in St. Louis. Again, thinking that the majority of the business lines...with the possible exception of securities..would be absorbed into their other locations.
OK, so, 20k jobs not lost....but, quite possibly 10-15k.....
I'm pretty sure that Wachovia's securities division is in Richmond. I also don't think that their employment base here is heavily mortgage driven. I think that when they acquired Golden West, that became the de facto mortgage arm of Wachovia and it is based out of Oakland.
As I said, if a sale has to happen (and I hope it doesn't come to that), the best case - at least short term- is the Spanish bank. My gut tells me that Wells Fargo would be better than Citi simply because it doesn't have as large an east coast presence. More jobs might be kept simply due to that. Also, WF is not as strong in the securities and investment banking arena so there might be more job stability there. Remember that branch jobs, commercial lending, investment advisors, etc. will not be affected too much by where the HQ is. Those types of jobs account for a large numbers of the local positions.
Anyway, it will be bad if it happens. I have no idea about total job loss. My best guess would be 5,000 to 8,000 in Charlotte. That is a serious blow. It is not, however, the end of the world. I don't mean to be cavalier. Each and every one of those people has obligations, hopes, dreams and families. There is a ripple effect with each job. I truly hope it won't come to any of this. The best that most of us average joe's can do to ensure Wachovia's survival is to keep on keeping on and keep a level head. Panic is never a good strategy.
I'm pretty sure that Wachovia's securities division is in Richmond. I also don't think that their employment base here is heavily mortgage driven. I think that when they acquired Golden West, that became the de facto mortgage arm of Wachovia and it is based out of Oakland.
As I said, if a sale has to happen (and I hope it doesn't come to that), the best case - at least short term- is the Spanish bank. My gut tells me that Wells Fargo would be better than Citi simply because it doesn't have as large an east coast presence. More jobs might be kept simply due to that. Also, WF is not as strong in the securities and investment banking arena so there might be more job stability there. Remember that branch jobs, commercial lending, investment advisors, etc. will not be affected too much by where the HQ is. Those types of jobs account for a large numbers of the local positions.
Anyway, it will be bad if it happens. I have no idea about total job loss. My best guess would be 5,000 to 8,000 in Charlotte. That is a serious blow. It is not, however, the end of the world. I don't mean to be cavalier. Each and every one of those people has obligations, hopes, dreams and families. There is a ripple effect with each job. I truly hope it won't come to any of this. The best that most of us average joe's can do to ensure Wachovia's survival is to keep on keeping on and keep a level head. Panic is never a good strategy.
Actually, Wachovia's security division is now HQ in St. Louis, just moved earlier this year. And, their mortgage division probably has several thousand employees in it here in Charlotte. THIS is the HQ for mortgage. (not Oakland). SO, this is scary indeed. But, now that the bailout seems to have passed, Wachovia might just be safe.
We all need to take a deep breath. Operations are not going to suddenly shut down here in CLT b/c of a merger/acquisition . . . and if there were to be consolidations w/ duties b/c of economies of scale b/n two financial entities . . .all that would take quite a while to work out on paper, much less to actually integrate.
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