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Old 06-19-2011, 09:09 AM
 
Location: The canyon (with my pistols and knife)
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According to the Pittsburgh Business Times, PNC might be preparing to buy a bunch of RBC (Royal Bank of Canada) branches in the South. RBC has over 400 branches in Virginia, North Carolina, South Carolina, Georgia, Alabama and Florida. PNC has a large footprint gap along the Atlantic seaboard between Fredericksburg, VA and Daytona Beach, FL. This is why there's been a lot of speculation that PNC's next big move would be into the South. Aside from a few dozen locations in Florida, PNC's footprint extends from New York, Philadelphia and Washington DC west to Chicago, Milwaukee and St. Louis. Their northernmost branches are scattered in northern lower Michigan, and their southernmost branches are scattered in Kentucky. If PNC purchases these RBC branches in the South, then the only places east of the Mississippi River without PNC will be Tennessee, Mississippi, upstate New York and New England.
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Old 06-19-2011, 09:21 AM
 
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Very nice fit for them, but I think RBC has a lot of junk to deal with (they were big in commercial real estate). PNC has a good record dealing with that issue, but obviously the bottomline is how much this costs them.
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Old 06-19-2011, 10:16 AM
gg
 
Location: Pittsburgh
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Not sure why they would want to go to a state with such trouble like Florida. Hope the deals they make are very sweet upfront. Florida is a mess in so many ways.
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Old 06-19-2011, 11:16 AM
 
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Quote:
Originally Posted by h_curtis View Post
Not sure why they would want to go to a state with such trouble like Florida. Hope the deals they make are very sweet upfront. Florida is a mess in so many ways.
That's often the best time to go in. After the crash when the only way is up.
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Old 06-19-2011, 02:58 PM
 
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Quote:
Originally Posted by MathmanMathman View Post
That's often the best time to go in. After the crash when the only way is up.
And a bank that has grown out of a base in Pittsburgh likely understands that pretty well.
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Old 06-19-2011, 03:52 PM
gg
 
Location: Pittsburgh
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Quote:
Originally Posted by MathmanMathman View Post
That's often the best time to go in. After the crash when the only way is up.
Hence my business savvy suggestion of a very sweet deal upfront.
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Old 06-19-2011, 03:54 PM
 
Location: Alabama!
6,048 posts, read 18,423,643 times
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If RBC sells out, I'm closing my accounts. They already bought up our local-based bank. I'm sick of all the mergers and buyouts. If I want a loan, I want it approved by somebody at least in my state, not in another country.
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Old 06-19-2011, 04:23 PM
 
Location: Philly
10,227 posts, read 16,821,015 times
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Quote:
Originally Posted by h_curtis View Post
Not sure why they would want to go to a state with such trouble like Florida. Hope the deals they make are very sweet upfront. Florida is a mess in so many ways.
Pnc already has a Florida presence...this purchase connects their northern presence with Florida by adding all the states in between. Perhaps as interestingly is what might happen to Raleigh's new rbc offices. For the past few decades Carolina has been on the right end of acquisitions...that's changed dramatically since 2008...at least in banking.
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Old 06-19-2011, 05:16 PM
 
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Shame in a way that Mellon made some bad decisions over the past 10 years. The horrible tax return dumping scandal when someone thought the best way to deal with falling behind on processing tax returns was to lose or destroy 40,000 tax returns. Mellon not only lost the business but was fined for millions.

Then they sold off their bank branches to Citizens to focus on high-end banking. Mellon later merged with the Bank of New York and the headquarters moved to NYC.

If Mellon had just been a bit patient, and hopefully was not leveraged heavily in mortgage backed loans, they might have been able to get Wachovia. Mellon had made a bid for CoreStates but CoreStates instead merged with First Union which later merged with Wachovia. If Mellon had played their cards as well as PNC, Pittsburgh could have had two major bank headquarters.

Mellon just disappoints, along with Andrew Mellon who put his Pittsburgh based fortune to build the National Gallery of Art for....Washington DC.
And his son Paul Mellon forgot his Pittsburgh roots too. Thank goodness for Richard King Mellon.
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Old 06-19-2011, 06:16 PM
gg
 
Location: Pittsburgh
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Reuters: PNC to buy RBC unit for $3.45 billion - Pittsburgh Tribune-Review
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