Monday, February 23, 2009

North Carolina National Bank/NationsBank/Bank of America

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.

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