Well Truist is going down the 🚽 with their reorg and impending layoffs. Our execs have been spending an awful lot of time in Charlotte lately. Are we going to buy up parts of Truist’s business, some of their real estate holdings, aquire Truist or put a full fledged hub office in Charlotte (not just one floor in the Truist building)?
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MUFG, Wells Fargo and Company and JPMorgan Chase are three of the largest institutional shareholders in U.S. Bancorp, why they allow this board and this set of bank officers continue in their current roles in these critical times is beyond me.
Nobody is talking much about the litigation against certain officers in their individual capacity in New York federal court and in Delaware chancery court, but you would hope the regulators and the institutional shareholders are paying attention to the allegations as the employees of U.S. Bank, the other shareholders and the longtime customers deserve much, much better than the tired and worn out old cliches' we've heard since Richard Davis stepped away.
USB has capital issues. MUFG put in $900M and took a 4.4% stake for a bargain. USB still has to pay MUFG $3.4B that they “borrowed” from UB as part of the deal. That’s on top of the $8B deal.
Regulators won’t let USB buy anything any time soon.
Truist is in absolutely no position to buy anything. At best they will be a highly discounted distress sale. Far too much distressed CRE and a long term MBS position that is a ticking bo-b. They barely squeezed out a pass on the last stress test.
U.S. Bank does not have enough capital, especially when considering projected new requirements, to buy any bank (much less a large bank) even if the price were $zero.
I remember the day the SunTrust/BBT merger was announced. I happened to be around a group of Sr. Execs and they laughed when the topic came up. Said we will just wait a few years and buy the whole darn thing. I was horrified as I knew all the good people from both had already left. It's a complete dumpster fire there right now.
Might be the other way around, the Carolina bankers may be more interested in being the owners and operators of the banking enterprise once known as U.S.Bank, would depend on what the institutional shareholders like MUFG, JPMorganChase and Wells Fargo preferred
U.S. Bank has more than one floor in the Truist building. Last time I was in the office there were about 5 or 6 full floors leased to USB.