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Originally Posted by BigRigMike
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At least PNC buying out National City is keeping both banks afloat, has doubled the size of PNC and will "supposedly" help them free up cash to offer credit to consumers. I don't see that as a bad thing, assuming thats how it really happens in the end obviously.
As for BofA that makes the story a bit different than an American Bank using their bailout to buy a Chinese one. They purchased a stake, and also with their own funds not bailout funds. BofA is in much better shape than everyone else, and from reading that article it sounds like they can make a lot of money on this deal.
Now of course the caveat is that hopefully that monetary gain will allow them to also free up cash to offer consumers more credit. It remains to be seen if or when that happens. Remember Banks make the big money on investments (and also lose which is why we are where we are now), and they need to do this to survive, they can't stop and flip around their entire business to stimulate lending to consumers, because other banks will take their missed opportunities and it will lead them to a path to failure. That and according to the article the hope is that they will use the bailout money (which is new to their balance sheet, and not the money used for this deal) that they have taken to stimulate the market.