For decades the town of Charlotte North Carolina, has been home to a beneficial rivalry between two leading banks: Wachovia and Bank of America, making Charlotte the second largest banking center in the nation behind New York.
In the midst of the current credit crisis the rivalry between these two banks, has become threatened, leaving many fearful of employment cut backs.
An announcement was made on Monday that Wachovia, an employer of approximately
20, 000 employees, would need to sell much of the company to Citigroup for an amount equal to one dollar per share. Many are hopeful however, that the significantly more competitive offer of seven dollars per share made on Friday, by Wells Fargo, will give some relief the city’s roller-coaster ride.
In addition, Bank of America’s purchase of Merril Lynch, last month, has left many employees fearful that much of the company’s investment banking would move to New York.
As a result of having to deal with their own financial difficulties, this formerly beneficial rivalry has been forced to take a backseat to more apparent issues causing unrest and concern among the cities residents.