https://finance.yahoo.com/news/the-new-strategy-for-us-banks-shrink-130002506.html
3 replies (most recent on top)
The best thing for the bank would be to be purchased by an entity with a vision. The bank is a leader in nothing and just wants to slowly die. The bank is like Kmart or Sears. Poorly run and each day is slightly worse than the day before.
Regrettably it's a catch 22, there are several revenue producing business lines that U.S. Bank could jettison or spin off into the open market, further enhancing the market position of a competitor, but having announced the intent to jettison, the prices will be lower given the published desire to exit as a motivated seller and U.S. Bank will be even harder pressed to do without the recurring revenue that particular line generates quarter over quarter, which can not be replicated within the business lines that will be left.
Vanguard, Blackrock, JPMorgan, MUFG and Wells Fargo may simply look to carve the bank up on behalf of the institutional shareholders, figuring the valuable pieces will all end up within their existing holdings and the table scraps can be spun out into U.S. Thrift and Finance, downtown Minneapolis.
Nervous this week will be rough one with several surprises. Best of luck everyone.