tied up in 2,000 pages of complex- ity so dense that it willfully defies comprehension.” She then added, “maybe the most optimistic way to think of this bill is as a stimulus program to create jobs for securities lawyers — they’ll be chewing on it for decades to come.” Like Social Security – which was
developed when the average lifespan of an American working man was less than 60 years, but today is over 75 and for women is over 80 – markets and methods have changed radically in the last half century. The diversity of invest- ment forms and their interrelationship is staggering. If nothing else, we have seen how a breakdown in one sector of the economy quickly spreads to others like a malignancy and is soon circling the globe. What is more, the average consum-
er’s understanding of how the markets operate often prevents them from understanding either the problem or the cure. For instance, according to one local bank president, most of the federal bailout money that was given to the large banks was to ensure they were able and willing to continue loan- ing money to the smaller local banks to ensure their solvency. This is a practice
the average bank patron doesn’t even know occurs on a daily basis.
What It Comes Down To According to reports by the Federal
Reserve, the national banks are still loaning money. However, what many fear may slow the recovery is their biggest customer is the federal govern- ment, not business. As federal deficits soar, loans to businesses, which the Federal Reserve tracks as compared to the previous year, are at a 50-year low. Nevertheless the banks are stabilizing and growing. Bank of America and JP Morgan
Chase, both reported profits earlier this year and felt these were signs of recovery. BOA CEO Brian Moynihan said in a statement, “the 2010 story appears to be one of continuing credit recovery, and our results reflect a grad- ually improving economy.” Later, his counterpart at JPMorgan Chase, Jamie Dimon, said the economy is show- ing “clear and broad-based improve- ments.” Most of the national banks, Wells Fargo, BB&T, Regions and others also showed encouraging signs of profitability. Interestingly, the local represen- tatives of the large nationwide banks
agree that most of these national and global financial fluctuations have profound affects, but are not what drives their success on the Space Coast. Rather it is the fiscal integrity, along with the personal connections they have with the people that trust them with their deposits or to extend them a loan and the level of customer service that they are able to deliver which sustains their market share. Steve Loso of Regions Bank
commented that it is the combination of the strength and resources of the national bank with the ability to deliver personalized service like a community bank that is the foundation for their growth and success. In spite of the fact that they are one of the largest banks in the country, he said he realized when he started working for them that the core values they had as a company weren’t a cliché or words on a plaque but the operating system that ran the company. As large and complex as banking
is, prognosticator John Naisbitt’s assessment that in the ever more sophisticated “high tech” world, the human need for personalized attention and service, what he called “High Touch,” still makes the difference. u
Brevard Info: No. of Branches 13 Deposits / Market Share 2009 2005 2000
$356 Million / 4.6% $89 Million / 1.3% N/A
National Info: Headquarters Birmingham, AL No. of Branches 2,000+ Total Assets
$146 Billion
Stock Info: Symbol Price
RF (NYSE) $6.85
52-Week Range $4.61– $9.33 Market Cap
$8.6 Billion
Brevard Info: No. of Branches 22 Deposits / Market Share 2009 2005 2000
$1.1 Billion / 14% $915 Million /13% $541 Million / 12.5%
National Info: Headquarters Atlanta, GA No. of Branches 1,800 Total Assets
Stock Info: Symbol Price
STI (NYSE) $23.64
52-Week Range $18.45 – $32.02 Market Cap
$11.82 Billion $174 Billion
Brevard Info: No. of Branches 14 Deposits / Market Share 2009 2005 2000
$541 Million / 7% $400 Million / 5.8% $212 Million / 4.9%
National Info: Headquarters: Wilmington, DE No. of Branches: 1100 Total Assets:
$163 Billion
Stock Info: Symbol Price
TD (NYSE) $68.85
52-Week Range $56.60 – $77.57 Market Cap
N/A
Brevard Info: No. of Branches 20 Deposits / Market Share 2009 2005 2000
$1.74 Billion / 26% $1.15 Billion / 25.2% $1.15 Billion / 26.7%
National Info: Headquarters San Francisco CA No. of Branches 6,650 Total Assets
$1.24 Trillion
Stock Info: Symbol Price
WFC (NYSE) $24.66
52-Week Range $23.02 – $34.25 Market Cap
$129.06 Billion
spacecoastbusiness.com OCTOBER2010[47
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