Four Banking Firms and Their Performance Term Paper by Nicky

A look at the performance of four banks and at the current U.S. financial environment.
# 150021 | 981 words | 9 sources | APA | 2012 | US
Published on Jan 19, 2012 in Business (Finance, Investment and Banking)


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Description:

The paper explains how the financial crisis has had devastating effects on the financial performance of banks and lending institutions around the globe. The paper looks at the performance of Regions Bank, Wachovia, Bank of America and BBVA Compass and discusses how as banks continue to compete to meet shareholders' expectations, it has become crucial that they review and adapt their corporate goals to better survive the economic condition of consumers today. The paper shows how customer buying power is at an all time low, and banks must fight to maintain their market share. The paper includes several graphs and diagrams.

From the Paper:

"As stated, the ongoing financial crisis of 2007 started a dramatic rise in mortgage delinquencies and foreclosures around the United States, with devastating effects on the financial performance of banks and lending institutions around the globe (Anderson 2009). Furthermore, the weaknesses in the foundations of both the private and federal finance systems have been exposed, and the consequences have been both devastating and informative for those companies remaining in the industry. The banking system itself remains unstable, but the process of recreating the business model is already underway at many regional and national banking chains (Green, Oct 2008). Many banks reacted to the first signs of the mortgage crisis and changed their way of doing business, namely shying away from mortgage-based lending portfolios. As consumers continued to experience declining home prices, rising unemployment and restricted credit, banks like the Wachovia Corporation (based in Charlotte, NC) reacted exactly as one would expect a sinking ship to: it reached for a lifeline. On October 12, 2008, the U.S. Federal Reserve approved Wells Fargo's takeover of the bank, thus creating the largest bank branch network in the United States.
"On December 31, 2008, Wells Fargo paid $15.1 billion--roughly $7 per share--to buy Wachovia. As an independent company, it is now the fourth-largest bank holding company in the United States, based on total assets. Before the acquisition by Wells Fargo, Wachovia had purchased several other financial services companies in an attempt to become a national bank and comprehensive financial services company (See Fig 3)."

Sample of Sources Used:

  • Anderson, Mark (2009-06-30). "Down in flames: Why Money Store was a bust". Sacramento Business Journal. American City Business Journals, Inc.
  • Bank vows $20 billion for green projects". msnbc. 2008-02-06. http://www.msnbc.msn.com/id/17500301/.
  • "Credit Cards' Latest Pitch: Green Benefits". Wall Street Journal. 2007-11-30. http://online.wsj.com/article/SB120225763311445823.html. Retrieved 8-7-09.
  • Freer, Jim (2007-03-09). "BofA donates $1M to Camillus House". South Florida Business
  • International Research Journal of Finance and Economics, Issue 3 (2006) http://www.eurojournals.com/finance.htm

Cite this Term Paper:

APA Format

Four Banking Firms and Their Performance (2012, January 19) Retrieved April 19, 2024, from https://www.academon.com/term-paper/four-banking-firms-and-their-performance-150021/

MLA Format

"Four Banking Firms and Their Performance" 19 January 2012. Web. 19 April. 2024. <https://www.academon.com/term-paper/four-banking-firms-and-their-performance-150021/>

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