Wade on Birmingham

Heads and tales: Optimus prime lending rate


fish foodBinge and merge: Regions Bank and AmSouth Bank, two big Birmingham-based financial institutions, are one. The estimated $10 billion deal, announced today, would create a Top 15 bank that would actually remain based in Birmingham. At stake: $140 billion in assets, $100 billion in deposits, 2,000 offices, 37,000 employees and more than 2,800 ATMs in 16 states. Closer to home, a combined 6,000 local jobs are on the line, with layoffs looming as an inevitable side effect of the deal. Wait, weren’t we opposed to same-sector marriages?
• Regions, AmSouth to merge [Birmingham News]

The word on Wall Street: So far, investors are lukewarm about the merger. [stock prices: ASO | RF] “The companies say they can wring $400 million in annual cost savings out of the combination, including $150 million next year. That would amount to 10 percent of their combined expenses. The companies will also take $700 million in restructuring charges.” Just as long as they continue to give away free toasters. They still do that, right?
• Investors Shrug Off AmSouth-Regions Merger [Forbes]

Merge is the new black: The Regions/AmSouth deal is third largest bank takeover in the past three months. Capital One and Wachovia (which bought out Birmingham’s SouthTrust in 2004) have recently announced upcoming takeovers. It’s just the start of merger mania, experts say, as smaller regional banks join forces to compete against bigger institutions. Potentially good for investors, potentially bad for customers dependent on competition for accounts and service.
• Regions-AmSouth tie-up may herald more bank mergers [Reuters]


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3 Yips for “Heads and tales: Optimus prime lending rate”

  1. admin
    Friday, June 2, 2006, 10:53 pm

    Hi Wade, I”ve created an entire blog dedicated to the Regions/AmSouth merger at http://www.ramsouth.com.

  2. donald
    Sunday, August 13, 2006, 10:16 am

    I have been in a lot of meetings with these guys fom Amsouth. It must be their culture, but they are scared of management.

    It’s like working with a bunch of Lemmings. It is one of 2 things. One, whatever comes top down is the way it is or two, “so and so wants this, so let me get something in place pronto!”

    In number two, it’s usually crap but they will never admit it.

    Regions was not perfect, but AmSouth is an f#$@ed up place. The AmSouth people must have gotten some top down command to come in and keep everything AmSouth – everyone in Regions is scratching their heads.

    No matter what facts are brought out, AmSouth will not admit that there is a better way than theirs. The new company is going to be a bigger AmSouth…not the best for investors.

  3. More pictures from the “American Idol” finale WorkPlay event and a return (somewhat) to normalcy in town
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    […] and exhausted after enjoying the band last night, I’ll invite you to click here to check out Wade Kwon’s account of the day’s biggest story. He was covering this Taylor Hicks thing long before I did, so […]

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