Leadpile’s Blog

In the midst of banks going under and consumers struggling to survive, another bank transaction has happened. According to consumer affairs, Capitol One has purchased Chevy Chase Bank. Chevy Chase bank has a large presence in New York, New Jersey, Texas and Louisiana.

     I think the oddest thing about another bank merger happening is, that I am not sure how many more of these mergers can really happen?  What other banks are out there anymore?  Also, I am not sure about your area of the country, but there are other “new” bank branches showing up on intersections all over my city.  I thought banks had no money?  How are they building all these new locations around our towns?  Maybe Leadpile Lead Exchange should start generating leads of businesses wanting to open a new bank…. no I don’t think so.

On a serious note, it is just a little odd to me to have so many banks either going down or being purchased, to then see new banks opening up in our cities. Are they going to be able to lend to all these consumers who are not qualifying at these other “struggling” banks?  I hope so because people need help right now!

I have an update on an earlier post discussing Citigroup taking over the failed Wachovia Bank. However, there is a new twist in this situation. A announcement was now made stating Wells Fargo & Company has purchased Wachovia Bank for a $15.1 billion all stock deal! Citigroup had agreed previously to purchase Wachovia for $2.1 billion, in addition to receiving some government assistance with the transaction. According to Business Week, the shareholders and regulators are now going to have to decide the future of the bank. It appears that the Wells Fargo deal will least likely affect taxpayers, and this could be more attractive to those that will be ultimately be making the decision on the future of Wachovia Bank. We shall all see how it works out……..