Discuss Detroit » Archives - January 2008 » Comerica's earnings drop 43% in first quarter « Previous Next »
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Iheartthed
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Username: Iheartthed

Post Number: 3013
Registered: 04-2006
Posted on Thursday, April 17, 2008 - 11:48 am:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

quote:

"The credit quality issues in the Midwest, particularly on the real estate side, are stable,” said Dale Greene, Comerica’s executive vice president and chief credit officer, noting that there isn’t any significant increase in home equity loan delinquencies.

In fact, the Midwest market accounted for 71% of Comerica’s net income in the quarter, largely because of a $10 million loss in its Western market.

The results are ironic because in recent years the bank has been focused on growing its operations outside Michigan, in high-growth markets like Texas, California and Florida. Comerica even moved its headquarters last year to Dallas.



http://freep.com/apps/pbcs.dll /article?AID=/20080417/BUSINES S07/80417039


Comerica, would you like a little salt on that foot?
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Johnlodge
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Username: Johnlodge

Post Number: 6167
Registered: 10-2003
Posted on Thursday, April 17, 2008 - 11:49 am:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Suck on that, bitches.
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Detroitnerd
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Username: Detroitnerd

Post Number: 2168
Registered: 07-2004
Posted on Thursday, April 17, 2008 - 11:57 am:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Awww, poor babies!

"They took their flight,
But money's tight
*CLAP*CLAP*CLAP*CLAP*
Deep in the heart of Texas!"

:-)
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Mackinaw
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Username: Mackinaw

Post Number: 4634
Registered: 02-2005
Posted on Thursday, April 17, 2008 - 12:03 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Of course we don't want Comerica to hurt too much because they are a major player in the Detroit market, and they maintain many offices still downtown, but yeah, I'm loving the fact that there gameplan is not working out so far.
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Hudkina
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Username: Hudkina

Post Number: 174
Registered: 12-2004
Posted on Thursday, April 17, 2008 - 1:03 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Yay! I love it.:-)
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Jt1
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Username: Jt1

Post Number: 11503
Registered: 10-2003
Posted on Thursday, April 17, 2008 - 1:17 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

While I am displeased with Comerica's senior leadership for leaving Detroit the simple fact of the matter is that there are far many more jobs here than they took to Texas. The Texas HQ is nothing more than a shelter for executive's money.

Being happy that Comerica is tanking is the same as being happy that people in Michigan will certainly be losing their Comerica jobs in the future which is what this news implies.

I do not like Comerica leadership's decision (even if it makes fiscal sense) and I do no business with Comerica. That does not change the fact that bad news for Comerica is bad news for Michigan and Michigan jobs.

How does the saying go "Careful what you wish for...."
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Johnlodge
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Username: Johnlodge

Post Number: 6170
Registered: 10-2003
Posted on Thursday, April 17, 2008 - 1:21 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

You are right, of course, Jt1. But I think Michiganders are all allowed one quick:





Before going back to reality.
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Jt1
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Username: Jt1

Post Number: 11504
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Posted on Thursday, April 17, 2008 - 1:24 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Very true and that was my first reaction.
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1953
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Username: 1953

Post Number: 1561
Registered: 12-2004
Posted on Thursday, April 17, 2008 - 1:26 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Ha-ha!
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3rdworldcity
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Username: 3rdworldcity

Post Number: 1094
Registered: 01-2005
Posted on Thursday, April 17, 2008 - 1:51 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Because Comerica is HQ'd down here in TX, shouldn't this be a "non-Detroit" thread?
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Iheartthed
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Username: Iheartthed

Post Number: 3015
Registered: 04-2006
Posted on Thursday, April 17, 2008 - 1:51 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

>Jt1

Yeah, I get what you're saying... but if Comerica was truly serious about refocusing their attention to the "high growth" areas of the Sun Belt then those jobs are to eventually follow anyway. I don't buy that this reasoning was their purpose for leaving, but to take them at their word means to accept the loss of these jobs as what is to follow.

This to me just blows a big gaping hole in their reasoning for abandoning Detroit. Too bad it didn't happen before the move was completed. I haven't looked at their business model, but it seems that if they took such a big loss out west in mortgages AND 71% of their revenues came from Michigan (which has a bit of a mortgage problem itself) then their customer base must be most diversified in Michigan. Michigan is the only thing keeping them afloat right now...
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Mackinaw
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Username: Mackinaw

Post Number: 4635
Registered: 02-2005
Posted on Thursday, April 17, 2008 - 2:09 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Well that's true, Iheart, especially if the Sunbelt doesn't recover well over the coming months and years. And this could very well be the case. With increasing fuel costs and the costs of building new homes increasing, and the general long-term effects of the credit scare we just got through (i.e. it will be more appropriately difficult to get mortgages), the sunbelt's pace of growth may lessen substantially. However, employers are still moving there, and in general, people follow.

But, I'm sure Comerica's well-trained economists/analysts knew that the SW market was going to weaken, and indeed that blows a gaping hole in their alleged motive for leaving Detroit. Like Jt1 was getting at, it was all about taxes, corporate earnings, and the bottom line for the execs. They should have just sought incorportation out of Delaware while remaining in Detroit, no?

There's just something fishy when part of their corporate profile is: "After more than a century and a half in Detroit, the company announced the relocation of its corporate headquarters to Dallas on March 6, 2007." 1849-2007 in Detroit, followed by a departure. If it was simply the preferences of the execs, I still don't get it. Here they had the chance to claim a stake a one of America's major cities' turnaround; here they were part of a downtown which is becoming one of the better downtowns in America, and they had gotten through the roughest days over the last two decades. I also don't understand how, in this information age that we are in, they needed to move their execs to the SW in order to more readily capitalize on a supposedly growing market. It doesn't seem to follow. It would be really nice to get something off-the-record from these guys.
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Alan55
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Username: Alan55

Post Number: 1543
Registered: 09-2005
Posted on Thursday, April 17, 2008 - 2:18 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

I have always found it amusing when I read the marketing brochures that small manufacturing companies put out. More than one will have a phrase to the effect, "We have offices in Gary, Indiana and West Palm Beach, Florida." Gee, it's probably coincidental that the owner of the manufacturing company also has a golf condo in West Palm Beach, isn't it?

I suspect that the behind-the-scenes information would tell you that the CEO of Comerica really wanted to live in Texas. All of the "sound business reasons" were created to rationalize what was essentially a personal choice.
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Patrick
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Username: Patrick

Post Number: 5340
Registered: 10-2003
Posted on Thursday, April 17, 2008 - 2:24 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

They left for Dallas because Ralph Babb wanted to bring the bacon home to the mother land...no joke. He was courted by Staubach and other dipshiats down there because Dallas didn't have a "hometown" bank at the time. Had Babb not ben from the Sunbelt, the move probably would not have happened. The guy hated Detroit and that was really no secret. Of course, pissing off board members isnt the way to get things done. So what happens when Dallas or Texas for that matter gets 1986'd again?
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Johnlodge
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Username: Johnlodge

Post Number: 6172
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Posted on Thursday, April 17, 2008 - 2:25 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

I think you guys are off the mark. The board wanted the move to happen. Based on interviews by Babb, I don't think he was happy about it, but had no choice.
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Alan55
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Username: Alan55

Post Number: 1545
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Posted on Thursday, April 17, 2008 - 2:26 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

The only thing left for Detroiters to do is to start switching any business they have with Comerica to locally-headquartered banks.
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Johnlodge
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Username: Johnlodge

Post Number: 6173
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Posted on Thursday, April 17, 2008 - 2:28 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

quote:

The guy hated Detroit and that was really no secret



Which is why he poured tons of money into Detroit on a yearly basis?

Look at the board of directors and shareholders if you want to know why this happened.
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Mackinaw
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Username: Mackinaw

Post Number: 4638
Registered: 02-2005
Posted on Thursday, April 17, 2008 - 2:30 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Well the board was surely persuaded. When we're talking about corporate politics, there are a lot of things the CEO can do to influence his subordinates.
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Detroitnerd
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Username: Detroitnerd

Post Number: 2170
Registered: 07-2004
Posted on Thursday, April 17, 2008 - 2:34 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Don't be fooled, Johnlodge. Comerica poured money into Detroit for the PR and the write-offs. As a rule, don't be too quick to praise philanthropists who hire PR companies to tout their "good works."
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Spiritofdetroit
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Username: Spiritofdetroit

Post Number: 915
Registered: 11-2006
Posted on Thursday, April 17, 2008 - 2:37 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

you have no idea what babb said to the board, mackinaw. Dont pretend you do.

they still have over 6000 workers in Michigan, and most of them in downtown detroit. they are still a company that invests in the downtown - and sorry to say, but your claim that downtown detroit is one of the best in the country simply isnt true at this point
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Johnlodge
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Username: Johnlodge

Post Number: 6174
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Posted on Thursday, April 17, 2008 - 2:40 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Detroitnerd, so it's OK to badmouth the man without evidence, but not OK to defend him based on interviews he's given? I guess this is what is meant by class warfare.
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Detroitnerd
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Username: Detroitnerd

Post Number: 2171
Registered: 07-2004
Posted on Thursday, April 17, 2008 - 2:41 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

No, I have a friend close to the situation, that's all. Don't want to out them, though.
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Iheartthed
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Username: Iheartthed

Post Number: 3016
Registered: 04-2006
Posted on Thursday, April 17, 2008 - 2:45 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Babb was certainly posturing in his interviews. I read somewhere that he's the one who originally pushed the idea.
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Sstashmoo
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Username: Sstashmoo

Post Number: 1281
Registered: 02-2007
Posted on Thursday, April 17, 2008 - 2:52 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Comerica still has a large group of Michigan employees. Headquartered here or not, this is not good news for us. It's certain they knew this was coming and would rather release that news in Texas rather than here.
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Mackinaw
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Username: Mackinaw

Post Number: 4639
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Posted on Thursday, April 17, 2008 - 2:53 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

You're right, SoD, they have 6000 workers here still, which goes back to my first post. We can't wish them too much difficulty, because they can still hurt us a lot more.

None of us except Dnerd know what Babb said, I just wanted to raise a possibility in response to the fact that the board supported the move.
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Spiritofdetroit
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Username: Spiritofdetroit

Post Number: 916
Registered: 11-2006
Posted on Thursday, April 17, 2008 - 3:07 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

agreed
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Detroitrise
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Username: Detroitrise

Post Number: 1960
Registered: 09-2007
Posted on Thursday, April 17, 2008 - 6:44 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

I love how every time a Detroit, MI company re-locates, it encounters even more issues. :-)
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Thnk2mch
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Username: Thnk2mch

Post Number: 1185
Registered: 02-2006
Posted on Thursday, April 17, 2008 - 8:46 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

So everyone is happy that a company employing thousands of Michganders has a bad report, but welcomes and begs a company that RUINS thousands of peoples lives to relocate to downtown.

I don't get it.
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Livernoisyard
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Username: Livernoisyard

Post Number: 5897
Registered: 10-2004
Posted on Thursday, April 17, 2008 - 9:03 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

^^ penis envy, most likely... There are far worse elements in Detroit than Comerica. I find Comerica not be be a villain at all.

And the owner of the other company (Quicken Loans) worked through Kilpatrick, supposedly. That alone should make one ponder. And its former adman/spokesman (David Hall) allegedly attempted a mutiny there wrt Rock Financial. Hmm...

Yet all one hears about that from the usual sycophants on DY is crickets.
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Lowell
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Username: Lowell

Post Number: 4753
Registered: 10-2003
Posted on Thursday, April 17, 2008 - 9:42 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Thank you for that refreshing cup of gall. One wonders how you can condescend to post up in such an inferior setting.

"...should make one ponder..."
"...allegedly attempted a mutiny... "

What does that mean?

Maybe that is why the sycophants are all crickety -- they don't want waste time on what they don't know.
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Livernoisyard
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Username: Livernoisyard

Post Number: 5898
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Posted on Thursday, April 17, 2008 - 10:22 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

quote:

Lowell
Board Administrator
Username: Lowell

Post Number: 4753
Registered: 10-2003

Posted on Thursday, April 17, 2008 - 9:42 pm: Edit PostDelete Post

Thank you for that refreshing cup of gall. One wonders how you can condescend to post up in such an inferior setting.

"...should make one ponder..."
"...allegedly attempted a mutiny... "

What does that mean?

Maybe that is why the sycophants are all crickety -- they don't want waste time on what they don't know.

People talk, and sometimes was is said is true...

Fact: David Hall was at the Rock Financial component of Quicken Loans.

Fact? The financial press stated that David Hall, formerly of Rock Financial is no longer employed there.


Hall out at Rock, but no one will say why

Rumors as to why: Rock Financial's David Hall Leaves Lender

Yet more potential BS: I'm David Hall (no longer with Rock Financial)

And some material from a site that's somewhat anti-QL--The Ripoff Report
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Danny
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Username: Danny

Post Number: 7294
Registered: 02-2004
Posted on Thursday, April 17, 2008 - 10:38 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

That's what they get they moved their World Headquarters to Redneckopolis!
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Mayor_sekou
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Username: Mayor_sekou

Post Number: 2272
Registered: 09-2006
Posted on Thursday, April 17, 2008 - 10:39 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

So how many of you actually closed your Comerica account because of their move?
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Hagglerock
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Username: Hagglerock

Post Number: 488
Registered: 03-2005
Posted on Friday, April 18, 2008 - 3:16 am:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Mayor,
My wife closed her account right after they moved.

Although it was because we found a better bank, not because they left MI.
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Lowell
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Username: Lowell

Post Number: 4756
Registered: 10-2003
Posted on Friday, April 18, 2008 - 10:10 am:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Interesting rumors LY with only one no-brainer fact, but all that still needs two bucks to buy to a cup of coffee at Starbucks.

I'm with the others enjoying the moment of glee and schadenfruede even though the local impact will be next to nothing. Comerica will survive.

My long time silent protest has been to never refer to the Tigers Ball park as -------- Park, but that is because I thought the City of Detroit and State deserved the payment of naming rights since they had donated $100 million plus to the project.
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Iheartthed
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Username: Iheartthed

Post Number: 3017
Registered: 04-2006
Posted on Friday, April 18, 2008 - 10:45 am:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

quote:

So how many of you actually closed your Comerica account because of their move?



I closed mine. Comerica doesn't have a presence in NYC so it was inconvenient to do my banking with them. After they moved their HQ from Detroit there was really no incentive for me to keep the account open.
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Iheartthed
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Username: Iheartthed

Post Number: 3018
Registered: 04-2006
Posted on Friday, April 18, 2008 - 10:54 am:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Oh yeah, I came across our buddy David Hall while doing something for work. He's doing something in the St. Louis area but I can't remember if it was mortgage related.
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Spacemonkey
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Username: Spacemonkey

Post Number: 428
Registered: 03-2006
Posted on Friday, April 18, 2008 - 11:13 am:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

If banks are hurting right now, how come there are new banks being built on practically every corner around town these days?
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Johnlodge
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Username: Johnlodge

Post Number: 6196
Registered: 10-2003
Posted on Friday, April 18, 2008 - 12:25 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

quote:

but welcomes and begs a company that RUINS thousands of peoples lives to relocate to downtown.



I got quotes from Quicken when I was shopping for a mortgage. I didn't like what they had to offer. Yes, they could be pushy. Here's how I got around having my "life ruined".

I said, "No thanks, I've had better offers than this."

Or, "I'm shopping for fixed rates only."

Granted, it was REALLY hard to do, but I did manage to not have my life ruined by Quicken.
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Umcs
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Username: Umcs

Post Number: 501
Registered: 06-2007
Posted on Friday, April 18, 2008 - 1:14 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Recent CEO recruitment from a Detroit based corp:

"...company is open to relocation to another major city with easy access to all major areas in the U. S. and in an area desirable to employees... CEO will influence that decision."

Comerica may have moved for any number of reasons. We will never know exactly how or why it occurred. Corporate HQ's are important for business development and relationships though. Detroit has to stop losing major corporations.
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Darwinism
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Username: Darwinism

Post Number: 728
Registered: 06-2005
Posted on Wednesday, April 23, 2008 - 9:29 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Many financial institutions, including those who are active in the Detroit area, will be facing tough times.

National City, with a prominent tower at the corner of Big Beaver and I-75 in Troy, is practically handing over their stock to a private equity firm at 40% discount!!

With the credit crisis still playing out its course, unemployment, rising gas prices and so on, our region's car companies, banks, retail stores and etc. are destined to suffer even greater challenges ahead.
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Gistok
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Username: Gistok

Post Number: 6703
Registered: 08-2004
Posted on Wednesday, April 23, 2008 - 10:29 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Here's the list of Comerica Board of Directors. Many of these people are current or former Michiganians.
______________________________ _______________

Comerica Incorporated Board of Directors:

Ralph W. Babb, Jr.
Chairman and Chief Executive Officer
Comerica Incorporated and Comerica Bank

Lillian Bauder, Ph.D
Vice President
Masco Corporation

Joseph J. Buttigieg, III
Vice Chairman
Comerica Incorporated and Comerica Bank

James F. Cordes
Retired Executive Vice President
The Coastal Corporation

Roger A. Cregg
Executive Vice President and Chief Financial Officer
Pulte Homes, Inc.

Peter D. Cummings
Chairman
Ram Realty Services

T. Kevin DeNicola
Senior Vice President and Chief Financial Officer
Lyondell Chemical Company

Anthony F. Earley, Jr.
Chairman and Chief Executive Officer
DTE Energy Company

Alfred A. Piergallini
Chairman, President and Chief Executive Officer
Wisconsin Cheese Group, Inc.;
Consultant, Desert Trail Consulting

Robert S. Taubman
Chairman, President and Chief Executive Officer
The Taubman Company

Reginald M. Turner, Jr.
Member
Clark Hill PLC

William P. Vititoe **
Retired Chairman, President and Chief Executive Officer
Washington Energy Company

Kenneth L. Way
Retired Chairman and Chief Executive Officer
Lear Corporation
______________________________ _________

** Note: William P. Vititoe used to be "Vice President - Data Processing & Comptroller" at Michigan Bell back in the 1980's.

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