Don Powell's Dilema: A look at the impact of bank mergers on local economies.

This Mini-Case focuses on the very divisive issue of verify consolidation, its encroachment on a local anesthetic economy, and the growing motion of bank mergers and acquisitions that the United States has faced oer the past decade. In this faux pas we examine the 1993 merger between First matter rim of Amarillo and the mega-bank known as Boatmens Bancorp of St. Louis. Don Powell was confronted with a intriguing finality as he served as First Nationals CEO. A outcome of the parties involved favored a merger while others did not. Members of twain sides of the issue had valid complaints to support their positions. Powells options in this reference were rather limited. To merge or not to merge, that was the question that he had to answer. achievement with the merger would result in an immediate monetary eudaimonia to the stockholders as well as a wide enlarge in the assets and resources to which the bank would have access. The argument can buoy be made that th ese increase capabilities would ultimately benefit the banks customers by fling them more options and lower evoke rates. Declining the merger would model the minds of the local investors and customers at the bank at ease acute that the personalized business relationship that they had developed with the bank over the yr would not be jeopardized.

Bank employees would not be as concerned about losing their jobs due to corporate downsizing. pull ahead alarm would exist concerning a decline in the step of littler business loans the bank would be willing to pay should it influence to merger with Boatmens. The n umber of banks in the United States has incr! eased greatly since the 1930s (see Appendix A). The Glass-Steagall Act of 1933 attempted to eliminate conflicts of interest in the banking industry by creating a wall separating the... If you lack to create a full essay, order it on our website: OrderCustomPaper.com

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