PNC: One of the eight "least evil" banks in the U.S.

[BrianTH]

Originally Posted by ML North

Also bear in mind, that PNC agreed to assume $20B in investment losses as part of the NC deal. Sure they gained some market share, but it wasn't exactly the greatest deal.

To be fair, it wasn't the worse deal either. National City still had some good assets and a large deposit base, and PNC has been able to make some decent money in the current climate.

Of course in some sense this is all run-of-the-mill stuff: the FDIC regularly brokers takeovers of failing banks, and both the acquiring bank and the failing bank's customers benefit, along with the financial system as a whole. This deal was too large to go that route exactly, and the TARP money helped provide necessary financing (again, paid back at a profit), but in broad outline it was the same sort of thing.

[ML North]

Originally Posted by BrianTH

To be fair, it wasn't the worse deal either.

Very true, but of all the government-assisted shot-gun M&A deals that took place during the last couple years, I think it's misguided to criticize this particular one. You want to talk about an opportunistic deal then we should be talking about JP Morgan's acquisition of Bear Stearns. The government guaranteed Bear's trading losses, and JP Morgan bought the business and building for a song. It doesn't bother me, but I can actually understand peoples' disdain for this deal. I don't think that the PNC / NC deal was done in the same spirit with the same level of opportunism.

[feanix]

Originally Posted by fossill

I recently moved here from Denver but I kept banking with a CU based there, which has no local branches. I bank remotely so in effect, it's an "internet bank" for me. I never need to deposit cash and if I need to deposit checks, I just scan my check in as a JPG and upload it to them. I don't even have to physically mail my check. I've been doing this for almost a year without any issues. For cash withdrawal, I just need to hit an ATM that is in their network to make it surcharge free, and those are never too far to make it inconvenient.

This is funny because I'm almost the exact opposite. I moved to Colorado from Pennsylvania and kept PNC, my bank from there. My husband opened an account here but I'm happy with PNC so I see no reason to switch.

I still haven't found a surcharge free ATM here though.

[MathmanMathman]

I wish Mellon had waited for the bank fallouts instead of earlier merging with BNY. They might have been able to take over Wachovia rather than Wells Fargo and have the market they wanted when they went after Core States plus a lot more.

[BrianTH]

Originally Posted by ML North

I don't think that the PNC / NC deal was done in the same spirit with the same level of opportunism.

Absolutely agree.

[Craziaskowboi]

Originally Posted by Ohiogirl81

PNC used TARP funds to take over National City Bank. Not what I would call upstanding. I will not do business with this bank.

PNC was forced to take the tarp funds. They really didn't need them, because unlike National City, they took no part in the stupid real estate orgy, and, hence, stayed profitable while National City and a litany of other banks collapsed.

[BrianTH]

Here is an interesting article discussing the PNC and National City merger and what has happened since then (note: posting this is in no way an endorsement of the stock-buying advice in the article--I'm just interested in the descriptive part):

The Fed Made This Rust Belt Bank a Great Buy - Seeking Alpha

In a nutshell, PNC is already being aggressive in the former National City footprint, and is setting itself up to be even more aggressive this year. So I think it is a fair to say this takeover has worked out well not just for the feds and PNC, but also with banking customers in the National City footprint.