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Posted on 12/06/2008 9:56:39 AM PST by rabscuttle385
Capital One Financial Corp. said yesterday that it will acquire Bethesda-based Chevy Chase Bank for $520 million in cash and stock, expanding its presence in its own backyard.
Privately held Chevy Chase Bank has a sizable presence in the Baltimore area, where it is the 14th-largest bank, according to the most recent figures from the Federal Deposit Insurance Corp.
The bank has about $11 billion in deposits, with nearly 300 branches in Maryland, Virginia, Delaware and the District of Columbia. Thirty-four branches are in the Baltimore area. Two years ago, the bank bought naming rights to the University of Maryland's stadium in College Park, now called Chevy Chase Bank Field at Byrd Stadium.
After receiving $3.56 billion as part of the government's bank investment program and raising more than $700 million through a stock offering, McLean, Va.-based Capital One will use $445million in cash and 2.56million shares to acquire Chevy Chase.
(Excerpt) Read more at baltimoresun.com ...
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As Joe Battaglia of Goldline pointed out on his radio program soon after the bailout was passed several weeks ago, the money is not reaching the hardest hurt in the general populace. In fact banks are hoarding the money and finally using the bailout money to buy other banks. Then why bail out banking system with taxpayer dollars so that the banks can buyout their competition? This is so wrong! In fact banks when pull a stunt like this should have to refund the bloody money.
By this they are using tax payer money to expand, shutting out competition and enabling themselves to raise customer fees and charges later, screwing over the people who made their ability to expand possible in the first place. Or, to put it indelicately, it's the raped paying the rapist.
I blame Congress for not putting conditions on the use of the money when they gave it to the banks.
Oh come on! You are expecting them to use careful thought processing when voting for these bills? That’ll never happen in our lifetimes.
Of course not. Congress acted true to form (hastily and without considering the consequences), and now they're whining that the banks didn't do what they wanted them to do.
What? No obligatory “What’s In Your Wallet” jokes?!?
Too bad. I used to live in the DC area and Chevy Chase bank was great. Branches everywhere. The best thing about them was that, after you made a transaction, it would show up instantly online. My current bank takes 2 days to acknowledge deposits.
It always works that way if you study economic panics of days gone by.. Commercial paper as the market is known, used to be a boring little-known to the average consumer but they are finding out quick what it means. Billions of dollars are lent out for as little as overnight, in order for companies large and small to lock in orders, make payroll, issue letters of credit for transport overseas, etc. Now, none of the banks want to lend to each other, even overnight. Rates used to be nominal as you might imagine but spiked as high as 4 or 5 per cent in recent months.
Maryland “Freak State” PING!
What's in your wallet?!! More like "Who's in YOUR wallet?! (besides you, of course)".
ugh...I’m actually surprised by this. Chevy Chase survived the Savings and Loan debacle, and completely rebounded. They[re a great bank to work with, and the individual branches have a lot of autonomy in tailoring deposits etc.
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