  Digitalvision Member Username: Digitalvision Post Number: 403 Registered: 11-2003 |
Flagstar won't move downtown - they have all kinds of roots in Troy and Oakland County. They, when courting me, made it clear they are a suburban bank (part of why I didn't change - I've been banking at a locally owned, Detroit-based bank throughout this mess) and also said there were no future plans for expansion into the city. Downtown Detroit is the last place they'll be located, IMHO. I'm not totally surprised about BoA going downtown - they've always had excellent urban initiatives. I also don't think the cuts will be major of local LaSalle staff - just did a search for BoA locations near Detroit on their website - and there are none within 100 miles. This is good news if it finally happens, and more power to'em. | ||
Mackinaw Member Username: Mackinaw Post Number: 3728 Registered: 02-2005 |
Interesting, Digitalvision. BoA correctly understands that you can locate an HQ at the city center and still be a fully-regional banking, servicing the city and those lucrative suburbs. | ||
Thejesus Member Username: Thejesus Post Number: 2275 Registered: 06-2006 |
BoA Takeover will lead to 1,500 job losses in Michigan http://www.freep.com/apps/pbcs .dll/article?AID=/20070925/BUS INESS06/709250307 | ||
Iheartthed Member Username: Iheartthed Post Number: 1725 Registered: 04-2006 |
Flagstar won't move downtown - they have all kinds of roots in Troy and Oakland County. Oops. I got my generic banks mixed up. I meant LaSalle Bank. | ||
Charlottepaul Member Username: Charlottepaul Post Number: 1782 Registered: 10-2006 |
"Also, isn't up to the regional president to decide where to locate a regional hq? The guy speaking about downtowns is the CEO of the entire company and i would guess that he is way more worried about the world hq in Charlotte than where a regional hq in a declining state are located." This might solve that problem: http://www.crainsdetroit.com/a pps/pbcs.dll/article?AID=/2007 1001/SUB/70930006/1033/toc/-/- /bank-of-america-to-name-new-h ead-of-michigan-after-deal | ||
Digitalvision Member Username: Digitalvision Post Number: 404 Registered: 11-2003 |
Thejesus - I'm guessing it'll be a net loss for the state, net gain for the city of Detroit. I do comprehend that, on a level, does suck. As much as I'm glad for the city, we as a region need to attract more outside investment that creates jobs - not re-purposes them - and that's when I think things will start to really get rolling. | ||
Iheartthed Member Username: Iheartthed Post Number: 1727 Registered: 04-2006 |
As much as I'm glad for the city, we as a region need to attract more outside investment that creates jobs - not re-purposes them - and that's when I think things will start to really get rolling. You gotta walk before you can run. | ||
Mackinaw Member Username: Mackinaw Post Number: 3729 Registered: 02-2005 |
Well there's nothing wrong with trying to get other bank regional HQs to move downtown. One day, maybe Flagstar would consider it... The lack of a stock/merc exchange in Detroit makes downtown HQs fairly non-compulsory (and in this information age it was already pretty non-compulsory). On the other hand, downtown has traditionally had a good concentration of financial institutions that benefit from the interplay with corporate HQs and law offices downtown. | ||
Mind_field Member Username: Mind_field Post Number: 793 Registered: 10-2003 |
Well, i hope Kieth Cockrell (did they spell his name right?) is fond of Detroit. If i had to guess, i would think it would be his decision where to locate the regional hq. I don't know if they do things differently in banking, or specifically at Bank of America. Here's hoping...... | ||
Gistok Member Username: Gistok Post Number: 5444 Registered: 08-2004 |
First of all Comerica is only moving 200 people to Dallas. Second... that 1,500 downsizing figure sounds kinda high. If LaSalle had 4,000 people in Michigan, and 800 are at their HQ in Troy... and if they decide to keep a HQ staff in Michigan... it would mean quite a downsizing in the number of branches located in Michigan, which currently stands at 263. For a bank (BoA) that has no presence in this state, that doesn't sound right. So I question the validity of that 1,500 number. Now if (because LaSalle has 140 branches in Illinois, and 6 in Indiana) BoA decides to close the Chicago HQ, and merge that staff into the Detroit area regional HQ (because Michigan has nearly twice the branches as Illinois)... then the 1,500 number would make more sense. But for Michigan alone, I'm a skeptic on the validity of the article that reported the 1,500 downsizing number. | ||
Scottr Member Username: Scottr Post Number: 788 Registered: 07-2006 |
Gistok, although I want to be skeptical on that number too, and thought it may be the total amount of layoffs for all of LaSalle, but then saw an MSNBC article http://www.msnbc.msn.com/id/20 990481/ that they plan on cutting 2500 in Illinois as well as the 1500 in Michigan, leaving them with 8000 in Ill and 2500 here. In any case, I highly doubt they would eliminate the Chicago headquarters - the 120-some branches they have there are the main reason they purchased LaSalle. As much as I hate to say it, Michigan was just a bonus, albeit a well fitting one since they had no operations here before. | ||
Viziondetroit Member Username: Viziondetroit Post Number: 1124 Registered: 11-2003 |
The only presence BOA has in Michigan is 4 ATM machines located Star Theaters. That sucks for my girlfriend who just moved here from NY because she has to drive far to get money out the ATM unless she wants to pay the fees. Sounds good to me, having more national banks in the area. It's good for business travelers and those who visit other regions frequently. It's good to have a choice between credit unions, local banks, state banks, regional banks, and national banks. | ||
Gistok Member Username: Gistok Post Number: 5447 Registered: 08-2004 |
Thanks Scottr, bummer.... Sounds like there won't be much of a HQ staff left in Michigan then. | ||
Scottr Member Username: Scottr Post Number: 789 Registered: 07-2006 |
quote: Well she'll be happy to know that even if it says LaSalle on the sign, starting yesterday she can use those ATMs with no fee. my ex-wife has an account with BoA too, but would have had no idea if i hadn't told her. | ||
Granmontrules Member Username: Granmontrules Post Number: 185 Registered: 01-2007 |
Hmmm IF something bad happens it is Kilpatrick's fault IF something good happens - he had nothing to do with it. Now that makes no sense "thejesus" - you can't have it both ways. He is the CEO of the city he sets the tone. Just as Archer and Young did in their days. | ||
Gistok Member Username: Gistok Post Number: 5448 Registered: 08-2004 |
Wasn't BoA originally HQ'ed in San Francisco? Did they merge with another bank to get their HQ moved to Charlotte? Or am I mistaken? | ||
Danindc Member Username: Danindc Post Number: 3401 Registered: 10-2003 |
Bank of America used to be headquartered in San Francisco, where it was founded just after the 1906 earthquake. Over time (I think with a couple mergers) it was known as BankAmerica, with a presence primarily in California. NationsBank of Charlotte bought BankAmerica in 1998 or so, and changed the name back to Bank of America. | ||
Gistok Member Username: Gistok Post Number: 5449 Registered: 08-2004 |
Thanks Dan. This is similar to what SBC did with AT&T. They purchased AT&T and then took on the AT&T corporate name (while still remaining HQ'ed in San Antonio). Ditto for First Chicago/NBD when they purchased BancOne (only to be purchased by Chase later). Bank branches sure have undergone a lot of name changes. They would save a lot of money if they just used theatre marquee type signage outside their branches. That way (like when a different movie was showing) they could just change the lettering on the sign at minimal cost!  | ||
Tkelly1986 Member Username: Tkelly1986 Post Number: 417 Registered: 01-2004 |
What seems like an idea location for Bank of America is a renovated (updated to class A office) David Whitney building...Not only does the lobby provide for an interesting retail bank space, but the signage on top of the building could be seen from Comerica Park. | ||
Paulmcall Member Username: Paulmcall Post Number: 438 Registered: 05-2004 |
One more bank bites the dust. Less competition for all. Bet those fired (opps laid off) employees will love it. The other Bank of America folks who have to travel downtown (away from their homes) will certainly be pleased as punch. Sounds like a shell game as far as net win or loss for Detroit when you include Comerica leaving. | ||
Mackinaw Member Username: Mackinaw Post Number: 3731 Registered: 02-2005 |
At least it makes up for what was lost. I studied anti-trust court rulings for bank acquisitions and mergers specifically last year, and at first glance nothing does not seem kosher; competition in bricks and mortar banking, furthermore, occurs within metropolitan areas. Unless I missed something, metro Detroit will have the same amount of major banks, with a simple name swap on one of them. The new one is more prestigious and has more assets. | ||
Paulmcall Member Username: Paulmcall Post Number: 443 Registered: 05-2004 |
Probably more fees too. | ||
Danindc Member Username: Danindc Post Number: 3414 Registered: 10-2003 |
quote: Depending on what kind of account you're looking for, Bank of America is very good on fees. I went to six different banks before I opened an account there, just because their fee structure was lowest. Unlike banks I had in Michigan, BofA has never charged me for writing a check or for excessive ATM usage. Since I have direct deposit and do most of my banking online and at ATMs, there aren't any fees to worry about. | ||
Mackinaw Member Username: Mackinaw Post Number: 3733 Registered: 02-2005 |
There you have it. A better bank. And no loss of competition in the Detroit market. | ||
Detroitrise Member Username: Detroitrise Post Number: 148 Registered: 09-2007 |
Actually, it's only the Michigan Headquarters. The Midwest headquarters is in Chicago. We had Comerica's World headquarters. It's a very big loss. However, I would prefer if they built new on the Monroe block. Although I sure wouldn't be disappointed if they moved into a less occupied building. | ||
Mackinaw Member Username: Mackinaw Post Number: 3735 Registered: 02-2005 |
Correct, it will be a regional HQ. That's no small thing though. I shared one theory on the Monroe Block thread which says that BoA downtown, in existing space i.e. One Woodward or One Detroit, would hasten the arrival of a Monroe Block development by increasing occupancy rates for offices. I don't think it would be good for a new building to be built for only 800 employees (perhaps they'd go as high as 1500 or something if they consolidated), even given the success that a small building like One Kennedy has seen. This is because we should all prefer something substantial on the Monroe Block, with a height at least matching the First National Building. To get this we'd have to wait awhile, unless someone like BoA is willing to make this an ambitious mixed-use project that could achieve such a height. | ||
Gnome Member Username: Gnome Post Number: 124 Registered: 08-2007 |
BoA has floated this idea of moving downtown simply to get the City of Detroit's banking business. There is not a single sensible reason why they would move out of their building on Big Beaver and move downtown. Especially into a building that would need a massive re-hab like the David Whitney Building. Now, don't get me wrong, it would be great if they would move downtown, but I don't see any reason why they would do it. They have a perfectly good building now, a building that is new-ish, a building they own, and a building which when thinned out will provide them with space to lease out to accountants, lawyers or other professional firms. Move downtown? Why? As far as getting the City's account, they can do that already by simply being more competitive with their products. The City has few choices; Comerica, Flagstar, 5th 3rd, ... all have there HQs in different cities. The only truly local bank is Franklin Bank and they might not want the headaches of dealing with a city on the brink of Reseviorship. Am I missing the point? What are the economic reasons that would draw them Downtown? | ||
Detroitrise Member Username: Detroitrise Post Number: 150 Registered: 09-2007 |
"Am I missing the point? What are the economic reasons that would draw them Downtown?" More regional Centralization is one major reason. | ||
Higgs1634 Member Username: Higgs1634 Post Number: 195 Registered: 10-2005 |
Big Beaver isn't central? | ||
Detroitrise Member Username: Detroitrise Post Number: 153 Registered: 09-2007 |
Detriot is the 11th Major City, not Troy. It would be like asking "So Cierco isn't central in Chicago?" (Message edited by Detroitrise on October 03, 2007) |
