Possible Wachovia effect on real estate

[Londonlawyer]

I agree with you. For the most part, happiness is a state of mind that we can control. We can detract from it to the extent that we let external factors bother us.

[chicagomomof2]

Originally Posted by chocula

Citi said they were moving the headquarters for retail banking to Charlotte, which means Charlotte will gain jobs, not lose them.

If they go through with their early commitment, then things will be great here.

But the Corporate and Investment Banking job will move to NYC (many will be let go). The reality is that the retail support jobs will pay significantly less than the CIB jobs. That will more dramatically impact all of the service providers in Charlotte, restaurant owners, etc.

Today's Observer is now reporting 7000 job losses.

And also, BofA is buying Merrill - which has a stronger investment bank so it is highly, highly likely that a lot of BofA CIB jobs go away, too.... (although there is a chance that they keep more here than Wachovia but who knows?). There will be trickle down, not just to real estate, but restaurants, shopping, law firms/ accounting firms/ etc. that support them here.

[southbound_295]

It will take a while for the dust to settle.

The bank branch that I have used for years is a good example. It was NJ National Bank which merged with PNB (Philadelphia National Bank) & became CoreStates Bank. Some jobs were lost because of duplication. CoreStates was acquired by First Union. Again, job loss because of duplication, but the branch continued, business as usual. First Union was acquired by Wachovia, & again, job loss because of duplication.

Based on what I've seen, the effect to the Charlotte real estate market will probably be in the very high end houses. I could be totally wrong.

Also, keep in mind that there is a fair amount of banking, particularly the credit card divisions, in Delaware. That could be a wild-card in the whole thing.