"Assuming the Sovereign deal is completed, 28 percent of deposits in Massachusetts would be held by foreign institutions, far above the US average of 6 percent. Only four other states ranked higher, including two that are Citizens Bank strongholds: Rhode Island, where 55 percent of deposits were held by foreign-owned institutions, and New Hampshire, with 47 percent.
"We're now part of the great experiment that's going on in terms of globalization" -- Robert L. Culver, chief executive of MassDevelopment, the quasi-public business financing agency
Excuse me? OUR LIVES are some sort of "great experiment" to this GLOBALIST SICKIE?
"Mass. globalization; With a foreign owner poised to take over Sovereign, some leaders worry about changes at some of the state's largest banks" by Ross Kerber, Globe Staff | November 2, 2008
What language does your bank speak? Foreign banks could soon control nearly a third of all Massachusetts bank deposits, one of the highest ratios of any state. And that could lead to big changes.
Overseas executives have hinted at major developments for their US operations including Citizens Bank and Sovereign Bancorp, after a series of emergency deals cut during the credit crisis last month. The lack of details has some local leaders jittery the changes could reduce local lending, contributions, or employment at Citizens and Sovereign, the second and third largest banks in Massachusetts.
Uh-oh.
"There are no sacred cows," new Citizens Bank chief executive Stephen Hester said on a conference call that day when asked if the bank might sell American assets. Second, Banco Santander of Madrid has promised cost savings when it takes over Sovereign after a flight of depositors and a free-fall in its share price.
Read JOB LOSSES, 'murkn.
Both banks and their parent companies have declined requests to interview executives about their strategies. But analysts and business figures see changes coming. Terrence Murray, the former chief executive of FleetBoston Financial Corp., said in an interview he expects Citizens will wind up being sold as a way for Royal Bank to pay back the government's cash infusion.
"They'll want to contract and de-leverage and get some of their money back," Murray said. Executives at both Citizens and Royal Bank declined comment on a potential sale. Between them, Citizens' and Sovereign's total deposits of $35 billion amount to 19 percent of total deposits in the state, according to the latest federal figures. The local financial industry had already faced an upheaval after Bank of America Corp., the state's biggest lender, said on Sept. 15 it would buy brokerage giant Merrill Lynch & Co. for $50 billion and began to combine some wealth-management operations including many in Boston.
Also, the fourth-largest bank in the state, TD Bank, is owned by Canada's Toronto-Dominion Bank, with deposits of $7.5 billion. Florida data firm SNL Financial says that assuming the Sovereign deal is completed, 28 percent of deposits in Massachusetts would be held by foreign institutions, far above the US average of 6 percent. Only four other states ranked higher, including two that are Citizens Bank strongholds: Rhode Island, where 55 percent of deposits were held by foreign-owned institutions, and New Hampshire, with 47 percent.
"We're now part of the great experiment that's going on in terms of globalization," said Robert L. Culver, chief executive of MassDevelopment, the quasi-public business financing agency. Foreign ownership so far hasn't meant major differences in the way the banks conduct themselves locally to customers. After Royal Bank of Scotland, whose total US deposits of $94.7 billion make it the country's eighth-largest bank, other big foreign lenders operating here include Britain's HSBC Holdings plc and France's BNP Paribas Group.
Yup, Scotland, Canada, Britain, France, etc, etc.
Culver said the test now is whether the new leaders will allow Citizens and Sovereign to continue to lend money both to individuals, in the form of mortgages or home equity and auto loans, and to commercial businesses, both staples of Citizens' and Sovereign's businesses to date.
Didn't they just get a piece of the BAILOUT BILL for that?
So far so good, say some business representatives like Brian Gilmore, executive vice president of the trade group Associated Industries of Massachusetts. Both banks have told him they're looking to make new loans, he said, and so far companies say they're still able to borrow money.
The bigger changes may be for other banks, said New Hampshire Bankers Association president Jerry Little, such as if a foreign owner moves to replace computer systems with its own. That could give smaller banks the chance to peel away some of its customers. "There are always customers who get a little frustrated" during bank mergers even because of simple changes like having to get new checks or dealing with new executives, he said. "The challenge to these institutions is to pull off these mergers so they don't lose any of their current book of business."
Citizens Bank is run by Citizens Financial Group of Providence. In a statement to the Globe on Oct. 13, Hester included Citizens among assets he called "very attractive." Hester is becoming Royal Bank chief executive as part of a deal by Royal Bank to accept an infusion from the British government as part of a $64 billion package spread among three banks. The cash comes with many more strings than similar infusions to American banks from Washington.
That is EASY ENOUGH since there WERE NO STRINGS attached to the American cash!
Meanwhile, Santander has said little about its intentions for Sovereign. It has also made references to cost-cutting and efficiencies, which could lead to job cuts. --more--"
Where is YOUR BAILOUT, Amurkn?
