It won’t be M&T. Too much overlap like Jay said, they’d have to divest >50% of what they’re acquiring. It would be a coup for First Niagara with their rapid expansion strategy, but I don’t think they have the resources to pull it off. I was thinking maybe PNC but they just bought another bank today (RBC US). Chase is unlikely but I wouldn’t be surprised to see them put in a lowball offer since they’re always looking to get something for nothing. Wells Fargo is a possibility. Then there’s the lower tier of regionals where you could see someone like Fifth Third or Harris Trust or State St. or someone look to expand their geographic footprint.
And yes, every dollar from this sale is going to China and India. Steady and profitable isn’t good enough for the new mgt team, they’re all about huge unustainable growth numbers that look pretty for the stockholders.
And more bad news for HSBC… plans to cut 30k jobs worldwide. http://www.wivb.com/dpp/news/business/HSBC-plans-to-cut-30%2C000-jobs-worldwide
Those 195 branches “only” represent 1900 jobs, so expect a lot more to happen for them to get to 30k. And with HSBC’s recent disinterest with the US market that’s real bad news for the HSBC tower.
First Niagara Arena sounds like a good place for the Sabres to play. Or maybe Terry Pegula’s Kickass Hockey Rink since that guy seems to like spending money.
They’re not interested in slow and steady profits. They are going for broke in emerging markets to post crazy profitability numbers in the short term and mortgaging their future to do so.
By the way, the regulators are not going to let them have 50+% market share in Buffalo…they are going to have to divest some branches here. Those of you with Buffalo-based HSBC deposits may see your branch bought by someone else.
Are the 195 branches every branch in wny? Will the accounts just get rolled into First Niagara or will we have to close them and open new ones at a bank of our choosing?
It’s almost every branch in WNY. IIRC they are keeping the ones at employee buildings like the center downtown. Your account will be converted to first niagara, or if they divest your branch, the other bank, automatically.
They’re selling every branch. Accounts will get rolled into what ever bank picks them up. A lot of them will be First Niagara but as Joe mentioned First Niagara will have to sell some off because of anti-trust issues.
EDIT: Hadn’t heard the thing about them keeping the branch at the employee buildings.
Thanks for the clarification. Hopefully First Niagaras online banking doesn’t suck like HSBC. Waiting 2 days to see a debit card transaction is annoying.
Just converted 89 NewAlliance Bank branches, 2 back offices, and 1 trust company in CT to First Niagara, IT wise… Also moved over 100 PC’s into the remodeled “U-building” down in the Larkin district. They’re growing, but still looks they are going to shut down/sell the overlapping HSBC locations with FNFG’s that are across the street. I know they are well under the 33% market share.
…Looks like I’m going back on the road soon.
And I have 0 complaints with anything First Niagara. Although they are my secondary banking.
