In 1960, North Carolina National Bank (NCNB) was a sleepy southern bank with small ambitions. Then along came the Savings and Loan crises and the United States Government created Resolution Trust Corporation (RTC) in 1989 whose sole purpose was to salvage assets of the Savings and Loans. The RTC closed 747 Savings and Loans with a combined value of 394 Billion Dollars by 1995.
Above all others, North Carolina National Bank profited most from this government interference. Starting by acquiring banks in Texas in 1990 and getting the nickname-No Cash for No Body, the United States Government gave assistance, guarantees, and rule breaks that were unavailable to other banks. With this blessing from Uncle Sam, NCNB went on a buying spree. Buying is the wrong term because most deals were made from stock alone. The list of regional banks acquired is to long to list but a partial list consist of Bank of Boston, Barnett, Boatmans, Citizens and Southern, Fleet, LaSalle, MBNA, SeaFirst, Standard Federal and many others. In 1991, after merging with Sovran, NCNB became Nationsank.
After every merger, comercial loans were called, fees increased, and branches closed, thus the nickname, No Cash for No Body.
In 1998, NationsBank went cross counry to pick up BankAmerica, and renamed itself Bank of America. That brings us to now.
Bank of America has received more cash and assistance from the United States Treasury in 2008 and 2009 than was spent during the six year existence of the Resolution Trust Corporation. The United States Treasury and the Federal Deposit Insurance Corporation was called on to provide cash for the purchases of Countrywide and Merrill Lynch in 2008 and 2009 respectively. If there is nationalization of Banks, Bank of America must be first. Thier growth was due to government welfare and its time the government was paid back. Twenty years of free ride is long enough. Nationalize BoA.
KING GEORGE
Above all others, North Carolina National Bank profited most from this government interference. Starting by acquiring banks in Texas in 1990 and getting the nickname-No Cash for No Body, the United States Government gave assistance, guarantees, and rule breaks that were unavailable to other banks. With this blessing from Uncle Sam, NCNB went on a buying spree. Buying is the wrong term because most deals were made from stock alone. The list of regional banks acquired is to long to list but a partial list consist of Bank of Boston, Barnett, Boatmans, Citizens and Southern, Fleet, LaSalle, MBNA, SeaFirst, Standard Federal and many others. In 1991, after merging with Sovran, NCNB became Nationsank.
After every merger, comercial loans were called, fees increased, and branches closed, thus the nickname, No Cash for No Body.
In 1998, NationsBank went cross counry to pick up BankAmerica, and renamed itself Bank of America. That brings us to now.
Bank of America has received more cash and assistance from the United States Treasury in 2008 and 2009 than was spent during the six year existence of the Resolution Trust Corporation. The United States Treasury and the Federal Deposit Insurance Corporation was called on to provide cash for the purchases of Countrywide and Merrill Lynch in 2008 and 2009 respectively. If there is nationalization of Banks, Bank of America must be first. Thier growth was due to government welfare and its time the government was paid back. Twenty years of free ride is long enough. Nationalize BoA.
KING GEORGE
10 comments:
King G
Great and accurate history lesson but I am not ready for nationalization. I need ATMs that work and government ATMs do not turn me on. Would the IRS have acces to you through your bank account? If BoA is nationalized, my cash goes under my pillow!!!
What about my shares you nitwit King.I already lost 53% in value on this toilet paper and you want to nationalize so my stocks will be worth zero. Lets really think this through. I also lost value in my 401k which held this and GE as blue chips. I feel like an idiot for investing in stocks.
You must be a communist like Obama. This is your worst post
Capitalism is dead. Long live Socialism. Why can't they file bankruptcy?
First timer. Well written but the conclusion will make a bad situation worse. People and investors will have absolutely no faith in banks and an all out run on deposits will ensue. Panic is not the solution. Your overall blog gives the impression of a thoughtful and wise investor and has been known to change the course of trading during the day. That's why I read it religiously. Please be a little more patient with the market and the administration.
You hit a nerve KG. The Chairman Ken Lewis is all over the networks defending the acquisitions of Countrywide and Merrill Lynch by BoA. I am shorting my shorts on this one. Thanks for the tip.
King George you rule. Kramer wont even touch this topic.
King George
I bow down in your honor. We are not worthy of your presence. Ken Lewis has now said that buying Merrill Lynch was a tactical mistake and he will leave Bank of America when all TARP money is returned. You beat the market on this call. It looks like nationalization will happen just like you called it. I am glad I shorted and out.
KG
Now can we have some good news
KG
Please come back. I need your insight. I will pay any price for you to return
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