| FEATURE STORY
of branches. They now have nine loca- tions in Brevard, two less than their peak and over $430 million in deposits. Regions Bank merged with
AmSouth in 2006 and continued its march towards dominance in the Southeastern U.S. It is ranked seventh locally, but is fourth in the state. Regions Bank has 13 branches and $356 million in deposits. Rounding out the field on the
Space Coast is the largest bank in the country, Bank of America, which has eighteen branches and ranks second with 16 percent of Brevard’s banking business. They are followed by SunTrust Bank headquartered in Atlanta, which has almost $1.1 billion in local deposits and is third in market share with 14%. The strength and stability, along
with the consumer services of these large national banks allow them to command a significant share of the banking market in our area.
Financial Regulatory Reform The Dodd-Frank Wall Street Reform and Consumer Protection Act, was
signed into law by President Obama in July of this year. The bill is 2,319 pages long (compared to most Tom Clancy novels that are less than 700 pages). Even the most abbreviated synopses are far longer than the United States Constitution. But of course the Founding Fathers weren’t dealing with hedge funds or electronic trading. Most experts acknowledge the
complexity of the issues and therefore the complexity of the legislation that it is designed to address. They are also uniform in agreeing that we won’t know the real impact until the regulations that implement the law’s provisions are defined. Christine Harper, writing in Bloomberg Businessweek, said the legislation “Will help curb risk-taking and boost capital buffers” but won’t “fundamentally reshape Wall Street’s biggest banks or prevent another crisis.” Even so, banking leaders on
the Space Coast were cautiously optimistic about the law. They recog- nize the need to tighten certain areas of oversight, yet were unsure what the ramifications or actual costs were going
to be. As with any regulation there is an expense attached to its implementation and that cost will likely be passed on to the consumer in one form or another, even though it is the consumer that the legislation is attempting to protect. For instance, theWall Street Journal reported that Wells Fargo expected the bill to cost them $530 million in lost revenue this year.
Drawing Conclusions These changes – which are designed
to protect the economy and the consumer – come with a price tag. There is more government-mandated oversight and therefore a larger govern- ment bureaucracy that must be paid to be the watchman. Additional regula- tion will cost banks additional money to be in compliance. Plus, with the loss of certain revenue streams like fees, these costs will have to be passed on to the consumer somewhere for banks to maintain their level of services. Mary Lu Carnevale described the
legislation in theWall Street Journal as “a chain of intricate compromises
Most of the national banks, Wells Fargo, BB&T, Regions and others also showed encouraging signs of profitability.
Brevard Info: No. of Branches 18 Deposits / Market Share 2009 2005 2000
$1.1 Billion / 16% $1.3 Billion / 19% $1.0 Billion / 24%
National Info: Headquarters Charlotte, NC No. of Branches 6,244 Total Assets
$2.2 Trillion
Stock Info: Symbol Price
BAC (NYSE) $13.19
52-Week Range $12.18 – $19.86 Market Cap
$132 46]OCTOBER2010
spacecoastbusiness.com
Brevard Info: No. of Branches 11 Deposits / Market Share 2009 2005 2000
$611 Million / 7.9% $249 Million / 3.6% $89 Million / 2%
National Info: Headquarters: Winston-Salem, NC No. of Branches: 1850 Total Assets:
$165.3 Billion
Stock Info: Symbol Price
BBT (NYSE) $23.05
52-Week Range $21.72 – $35.72 Market Cap
$15.97 Billion
Brevard Info: No. of Branches 12 Deposits / Market Share 2009 2005 2000
$392.6 Million / 5% $533 Million / 7.7% $249 Million / 5.7%
National Info: Headquarters New York City, NY No. of Branches 5,000+ Total Assets
$2 Trillion
Stock Info: Symbol Price
JPM (NYSE) $37.83
52-Week Range $35.16 – $48.20 Market Cap
$150.08 Billion
Brevard Info: No. of Branches 9 Deposits / Market Share 2009 2005 2000
$430 Million / 5.58% N/A N/A
National Info: Headquarters: Pittsburg, PA No. of Branches: 2512 Total Assets:
Stock Info: Symbol Price
PNC (NYSE) $53.7
52-Week Range $39.44-$70.45 Market Cap
$28.18 Billion $269.9 Billion
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