Survival tactics
Article Abstract:
The decision of BankBoston Corp to merge with its hometown rival Fleet Financial Group Inc gave the financially unstable company a new lease in life. The $16 billion transaction will result in greater diversification and scale, and the potential of more stable earnings for BankBoston, which had been suffering from weak earnings and poor stock market performance. The deal, which would result in the $180-billion-asset Fleet Boston Corp, protects the volatile business lines of BankBoston through a more stable balance sheet and greater earnings mix, although its unique culture and franchise is certain to be diluted. On the other hand, Fleet Financial also benefits from the critical mass created by a large corporate, private equity and investment banking activities. The success of the union is possible if integration issues, including organization structure, systems consolidation and personnel reduction, are addressed immediately.
Publication Name: Banking Strategies
Subject: Business
ISSN: 1091-6385
Year: 1999
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Patient capital
Article Abstract:
Cleveland, OH-based National City Corp ventured into investment banking with the purchase of Raffensperger, Hughes & Co, a full-service brokerage and investment banking firm based in Indianapolis, IN. Although the acquisition is barely two years old, National City is convinced that its attempt at blending commercial and investment banking will give it equity underwriting powers that will result in fee income and expanded customer relationships. However, the acquisition was not easy for National City as it entailed the integration of disparate compensation and control structures and the achievement of expertise in the field of equity underwriting. Out of its attempts as an underwriter in 26 offerings, National City has won only three co-manager assignments. The investments firm hopes to snag lead manager assignments in the future, which are more lucrative than co-manager roles.
Publication Name: Banking Strategies
Subject: Business
ISSN: 1091-6385
Year: 1997
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Database marketing at Wells: execution matters
Article Abstract:
Database marketing plays a crucial role in the success of Wells Fargo & Co's retail banking business. It enables the bank to segment customers and target low-profitability clients, thus contributing to its efforts to aggressively deploy alternative delivery channels, including multifunctional ATMs, PC online banking, telephone call centers and supermarket branches. However, database marketing has limitations, as illustrated by the sharp contrast between Wells Fargo's highly successful Business Direct loan program and its failed credit card campaign. The two programs also underscore the importance of effective execution in fulfilling strategy. The bank responded to the credit card fiasco by restructuring the organization such that the credit card and small business units are integrated.
Publication Name: Banking Strategies
Subject: Business
ISSN: 1091-6385
Year: 1997
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