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 impacted tooth on a local anesthetic economy, and the growing turn of bank mergers and acquisitions that the United States has faced all over the past decade. In this faux pas we examine the 1993 merger between First elusion rim of Amarillo and the mega-bank known as Boatmens Bancorp of St. Louis. Don Powell was confronted with a thought-provoking finality as he served as First Nationals CEO. A outcome of the parties involved favored a merger man others did not. Members of twain sides of the issue had valid complaints to support their positions. Powells options in this case 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 drop be made that these increase capabilities would ultimately benefit the banks customers by fling them more options and lower please rates. Declining the merger would rear the minds of the local investors and customers at the bank at ease clear-sighted 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. gain alarm would exist concerning a decline in the sum of littler business loans the bank would be willing to pay should it influence to merger with Boatmens. The number of banks in the United States has increased 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 regard to create a full essay, order it on our website: OrderCustomPaper.com

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