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I have what might be construed as an off-topic question but it's relevant to this discussion.
Why are all of these deals being done over weekends?
Is it to stave off market panic?
I can more easily understand this BofA/Merrill-Lynch acquisition, but didn't the Federal Government take over Freddie and Fannie over a weekend break too (actually, I believe that was a holiday weekend to boot)?
That seems strange to me.....
Last edited by Alpha8207; 09-15-2008 at 01:36 PM..
Another Charlotte forum has a member that posted this morning that Ken Lewis, BoA's CEO stated in the press conference this morning that the combined company's Corp HQ would remain in Charlotte.
Another Charlotte forum has a member that posted this morning that Ken Lewis, BoA's CEO stated in the press conference this morning that the combined company's Corp HQ would remain in Charlotte.
Thank you for weighing in, Ohio. Yes, and we are all aware here that one reason BofA has chosen to stay here is b/c CHARLOTTE IS NOT NYC.
He's not going to announce in a press conference conducted hours after the deal that the HQ is moving to NY. Moreover, it's odd that a company, which is allegedly tied to Clt., has to give constant reassurance about whether it will remain or go to NY.
He's not going to announce in a press conference conducted hours after the deal that the HQ is moving to NY. Moreover, it's odd that a company, which is allegedly tied to Clt., has to give constant reassurance about whether it will remain or go to NY.
I don't find it odd when people (like you) can't wait to start speculating about how BofA HAS TO MOVE TO NYC to actually be a BIG BANK.
Obviously, BofA is a big bank right now. And they are not in NYC. Evidently, that is something that just messes w/ the minds of New Yorkers.
I don't find it odd when people (like you) can't wait to start speculating about how BofA HAS TO MOVE TO NYC to actually be a BIG BANK.
Obviously, BofA is a big bank right now. And they are not in NYC....
You obviously don't understand finance. Before Merrill, B of A was not a big i-bank, and Charlotte was an acceptable place to be if it wanted to continue servicing Aunt Mildred's savings accounts, Jo Schmo's home and auto loans, and XYZ's credit card. However, to the extent that (with Merrill), it is a player in i-banking and wants to be even more so, it must be in NY or London. It's that simple. Companies go to NY and London for M&A, to raise capital, etc. They don't come to Charlotte, let alone to substantially more signficiant cities like Boston or Frankfurt.
You obviously don't understand finance. Before Merrill, B of A was not a big i-bank, and Charlotte was an acceptable place to be if it wanted to continue servicing Aunt Mildred's savings accounts, Jo Schmo's home and auto loans, and XYZ's credit card. However, to the extent that (with Merrill), it is a player in i-banking and wants to be even more so, it must be in NY or London. It's that simple. Companies go to NY and London for M&A, to raise capital, etc. They don't come to Charlotte, let alone to substantially more signficiant cities like Boston, SF or Frankfurt.
Thank you for your attempts to educate me. So glad to know there is someone out there willing to spend time trying to get me up to speed w/ the ABCs of financial markets.
I am going to forward your info to the Charlotte Chamber and CharMeck's City Planner and Mayor, so they can consider themselves duly warned about BofA's departure.
I have what might be construed as an off-topic question but it's relevant to this discussion.
What are all of these deals being done over weekends?
Is it to stave off market panic?
I can more easily understand this BofA/Merrill-Lynch acquisition, but didn't the Federal Government take over Freddie and Fannie over a weekend break too (actually, I believe that was a holiday weekend to boot)?
That seems strange to me.....
They do it on the weekend for several reasons, one is exactly what you point out, to look at the market. They generally try and get the key members of the board together to agree to the deal, though most of them have seen something before. They agree to it in principle and then over the time they could do a LOI (Letter of Intent) and then work the details. The deal could still be stopped by regulators or shareholders or people backing out (sometimes there are penalties depending on the milestones).
These types of business are slowest on the weekend, less interuption.
Gov't take overs can be completed on a weekend to reduce effect on the customer, though the customer can still panic.
You obviously don't understand finance. Before Merrill, B of A was not a big i-bank, and Charlotte was an acceptable place to be if it wanted to continue servicing Aunt Mildred's savings accounts, Jo Schmo's home and auto loans, and XYZ's credit card. However, to the extent that (with Merrill), it is a player in i-banking and wants to be even more so, it must be in NY or London. It's that simple. Companies go to NY and London for M&A, to raise capital, etc. They don't come to Charlotte, let alone to substantially more signficiant cities like Boston or Frankfurt.
Before criticizing the populace of Charlotte based on your crystal ball type predictions and our disagreements with your assesment, you may want to understand the US Financials Market a little better or even just Bank of America better. You are correct in that Bank of America was not a top player in investment banking, but I wouldn't call them exactly small, even if they were a quarter the size of Merrill in the investment space. They are at the top or in the top 3 in a number of things incoluding banking transactions, Deposits, Mortgage generations, etc. I believe 90%+ of the Fortune 100 does business with Bank of America. But I could go on....
These are global companies and your headquarters and staffing do not dictate where business can occur. Bank of America has a significant presence in NY and will continue to do so. NY is the primary Financial Center in the US, Charlotte will never become NY. What we are saying is that you will not see Bank of America up and move it's Headquarters to NY (no reason to), nor move a significant portion of it's support staff there. It will keep it's presence in Chicago, Texas, California, Charlotte, UK, China, India, etc. Yes it will remain a Global company, and for the near future it's headquarters in Charlotte and a significant presence in NY.
Last edited by Whytewulf; 09-15-2008 at 02:33 PM..
BofA moving to Manhattan? Someone might want to tell them to stop building that enormous new complex in Charlotte then!
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