The Affects of Bank Mergers on Customers & Associates

The banking industry has undergone major upheaval in recent years, largely due to the lingering recessionary environment and increased regulatory environment. Many banks have failed in the face of such tough environmental conditions. These conditions

Generate a list of the ways in which you believe your responsibilities and the tasks you perform are likely to change because of the merger and your resulting new role. Hint: It may be helpful to make lists of what you imagine to be the circumstances before and after your appointment. For example, two obvious points of comparison involve number of employees (which implies many necessary tasks) and travel inherent in the job. See how long a list you are able to generate.

     Both banks are similar in size, corporate culture, and operations. There is very little overlap of their branches. Regions and Union Planters have a total of 1,383 branches in fourteen states. As you can see from the table below, Regions and Union Planters only have overlapping branches in six states. Tennessee creates the biggest challenge for consolidation with seventy-two branches in twelve cities. However, consolidation of branches in large cities such as Memphis, Tennessee may not be a problem. Depending on where each branch is located, the closing of branches may be minimal. This is a very important factor when companies merge due to job loss and moral. Hopefully most of the jobs losses will be through attrition and if jobs must be eliminated then it should be minimal. The new regions bank expects to increase opportunities for their employees (Jeter, 2/09/2004).

Compare and contrast today’s structure versus historical structures. Why has consolidation occurred and who will experience benefits and losses – customers, the institutions, etc. Why have bank failures occurred? Are there any consequences of consolidation and failure in the industry?

Merging with another organization has downfalls of destroying wealth from the merger. Considering the buying price is important when merging, spending too much on the merger will impound the value after the merger. Some mergers do not create wealth so capital is lost through the merger. There is no guarantee of financial gain and every formula considered with focus, just as with an acquisition. The final decision dictated by the variables. One company merging with another company takes the debt and losses of those companies in the new formed company.

One of biggest banking merger took place in December 2000 when Chase Manhattan and J.P. Morgan & Co. merged. The new name of the combined company was JP Morgan Chase. In 2004, Chase became the largest credit card issuer in US after it acquired Bank One. In 2008, JPMorgan Chase also acquired the Washington Mutual and Bear Stearns & Co.

A merger is a partial or total combination of two separate business firms and forming of a new one. There are predominantly two kinds of mergers: partial and complete. Partial merger usually involves the combination of joint ventures and inter-corporate stock purchases. Complete mergers are results in blending of identities and the creation of a single succeeding firm. (Hicks, 2012, p 491). Mergers in the healthcare sector, particularly horizontal hospital mergers wherein two or more hospitals merge into a single corporation, are increasing both in frequency and importance. (Gaughan, 2002). This paper is an attempt to study the impact of the merger of two competing healthcare organization and will also attempt to propose appropriate

Question 1 Several factors have been proposed as providing a rationale for mergers. Among the more prominent ones are (1) tax considerations, (2) diversification, (3)

An example is Santander Bank, who announced to close down 139 branches in the next 6 months, replacing the face to face services, with online banking access and telephone banking. This decision not only affected customers, but employees as well, as this will result in over 1000 employees losing their jobs.

Banks have been at the forefront of the financial system for as long as they have existed and have captured the attention of stakeholders on both controversial grounds as well as being undisputed with regards to the many helpful services they provide. JP Morgan & Chase is one such bank, surrounded by hostile news articles and excessive scrutiny but rightfully so as it has of recent been the topic of much controversy as turning a blind eye to the moral codes established by the Securities and Exchange Commission (SEC) and assisting Ponzi Scheme masterminds in swindling unsuspecting investors.

Extensive research has determined that the banking industry is in an unstable state. The industry’s profits have

• Governance and oversight: Assessing business model and strategy changes and reinforcing the importance of sound corporate governance appropriate for the size and complexity of the individual bank. A specific focus will be on determining the adequacy of strategic, capital, and succession planning. Examiners will assess whether the plan is appropriate in light of the risks in new products or services. If applicable, examiners will assess the bank’s merger and acquisition processes and procedures.

The banking industry is highly competitive. The financial services industry has beenaround for hundreds of years and just about everyone who needs banking servicesalready has them. Because of this, banks must attempt to lure clients away fromcompetitor banks. They do this by offering lower financing, preferred rates andinvestment services. The banking sector is in a race to see who can offer both the

In this essay I will be addressing the “Too Big To Fail” (TBTF) problem in the current banking system. I will be discussing the risks associated with this policy, and the real problems behind it. I will then examine some solutions that have been proposed to solve the “too big to fail” problem. The policy ‘too big to fail’ refers to the idea that a bank has become so large that its failure could cause a disastrous effect to the rest of the economy, and so the government will provide assistance, in the form of perhaps a bailout/oversee a merger, to prevent this from happening. This is to protect the creditors and allow the bank to continue operating. If a bank does fail then this could cause a domino effect throughout

Some of these mergers made full use of new laws permitting banks to spread within and across state lines. Other mergers were pursued to reduce costs, even though parts to be proven in vain. Merger activity has decreased in recent days, and some specialists anticipate this is just a momentary pause. Even if merger activity is unable to climb up to its previous levels, mergers have influenced banking to some extent. One important effect of the recent merger wave has been an increase in the role of large banking organizations.