Republican gubernatorial candidate Pat McCrory rolled out his first TV advertisement June 1. The 30-second spot featured McCrory casually walking in an empty warehouse, talking to the camera. It was paid for by the Pat McCrory Committee.
Claim: "Let's forget about politics for a while and think about us. That's what we tried in Charlotte when I was mayor.”
Context: McCrory’s line suggests he was beyond partisan politics during his tenure in Charlotte. But it depends on who you ask.
A bill to modernize the state's banking law, a move that former state banking commissioner Joseph Smith Jr. advocated for years, is being considered by the House after sailing through the Senate.
With bipartisan support and the endorsement of both the banking industry and consumer advocacy groups, the "Banking Law Modernization Act" was approved unanimously by the Senate -- 47-0 -- on Wednesday.
"It's pretty technical. It's pretty boring. Everyone agrees on it," said Chris Kukla, senior counsel for government affairs at the consumer-oriented Center for Responsible Lending.
Kukla served on the Joint Legislative Study Commission on the Modernization of North Carolina Banking Laws that was formed last year to study the issue. The committee found that a considerable chunk of the state law regulating banks had been on the books for more than 70 years.
The committee concluded that modernization was needed to ensure that the state's banks can effectively compete in a technology-driven industry and "to avoid duplication with federal law and to maintain North Carolina's reputation among the most progressive banking states in the nation."
First Citizens Bancshares reported after the market closed today that its net come increased 1.5 percent in the fourth quarter.
The Raleigh-based parent of First Citizens Bank had net income of $30.1 million, or $2.97 per share. A year ago its net income totaled $29.6 million.
For the full year, the bank had net income of $195 million, or $18.80 per share, compared to $193 million, or $18.50 per share, in 2010.
The bank has boosted its results in recent quarters through the acquisition of six failed lenders that were taken over by the Federal Deposit Insurance Corp. The bank reported a $150.4 million gain on FDIC acquisitions in 2011.
First Citizens has 435 branches nationwide. The bank had $20.88 billion in assets as of Dec. 31.
The bank's stock closed today up $3.07 at $168.96. Shares are down 3 percent this year.
PNC Financial Services Group, the regional bank that is acquiring Raleigh-based RBC Bank, saw profits decline 40 percent in the fourth-quarter, the company reported today.
The Pittsburgh-based bank, which ranks as the nation's sixth-largest bank based on assets, reported net income of $493 million, or 85 cents per share.
That was well below the $1.49 cents per share that was the average of 26 analysts that cover the company, according to Bloomberg News.
PNC reported net income of $820 million, or $1.50 per share, during the same period a year ago.
The company took a $240 million charge in the fourth quarter for foreclosure-related activities.
For the year, net income was $3.1 billion, or $5.64 per share.
CEO Jim Rohr said in a statement that the bank had a solid year given the challenging environment of low interest rates, increased regulation and overall sluggish economic growth.
Banks are test driving yet another fee.
Starting in October in five states, Wells Fargo will charge customers $3 per month if they use their debit card for purchases or payments, Charlotte Observer staff writer Rick Rothacker reports.
Customers can avoid the fee if they don’t use their card or by signing up for certain checking accounts.
The guinea pigs will be customers who opened business and personal accounts in Oregon, New Mexico, Nevada, Georgia and Washington. The test won’t affect Carolinas customers unless they originally opened their accounts in one of those states, Wells spokesman Josh Dunn said.
No decision has been made on whether to expand the pilot program, Dunn said. Wells Fargo bought Charlotte’s Wachovia in 2008 and is converting Carolinas bank branches to the Wells name this fall.
Swiss investment bank Credit Suisse plans to cut more than 2,000 jobs worldwide after reporting weaker quarterly profit.
It's not clear how much the cuts will effect workers in Research Triangle Park, where Credit Suisse employed nearly 1,100 people at a technology support center at the end of 2010. The facility also employs about 200 contractors.
Credit Suisse was lured to RTP in 2004 with the promise of incentives worth as much as $14.4 million. The company announced several expansions since then, including a plan in 2009 to add 300 more information technology workers.
This morning, the company said it will eliminate about 4 percent of its 50,700 full-time positions worldwide. The move will save more than $1.2 billion in annual costs by 2012.
PNC Financial Services Group confirmed this morning that it has agreed to buy struggling Raleigh-based RBC Bank for $3.45 billion in cash and stock.
The deal allows Pittsburgh-based PNC to expand quickly in the Southeast, and lets Royal Bank of Canada shed its underperforming U.S. subsidiary.
"This gives us a substantial growth opportunity by bringing our products and services to RBC Bank's markets," CEO James E. Rohr said during a conference call this morning.
PNC expects to close the sale in March 2012, which is when it plans to convert RBC branches to the PNC name. PNC also anticipates that it will cut about $230 million in costs "through operational and administrative efficiency improvements."
That undoubtedly will mean job cuts, especially at RBC's downtown Raleigh headquarters. RBC employs about 5,000 people, including 500 in Raleigh.
Rohr said in a phone interview that no decisions have been made on how many jobs will be eliminated, but added that the bank plans to minimize the number through attrition and by re-training employees whose positions are cut to handle other roles.
The Canadian parent corporation of Raleigh-based RBC Bank reported stronger quarterly profit this morning, and announced plans to boost its cash dividend to shareholders for the first time in nearly four years.
But the results from Royal Bank of Canada, that country's largest lender, were slightly weaker than analysts had expected, Bloomberg News reports. The stock fell in morning trading.
Royal Bank didn't include any updates on RBC Bank's future in the announcement about its second-quarter results this morning. Royal Bank has hired JPMorgan Chase to advise it on a possible sale of RBC Bank, according to recent published reports.
"Although I will not comment on speculation with respect to RBC Bank, we do remained focused on turning around these operations and we are making good progress," Royal Bank CEO Gordon Nixon said on a conference call. "We remain fully committed to the U.S. market and committed to generating strong returns."
Bank of America will more than triple its number of assistance centers for homeowners facing foreclosure, bringing the total to 40 in 22 states, Charlotte Observer staff writer Kirsten Valle Pittman reports.
Beginning this month, the Charlotte-based bank plans to open 28 new centers – including one in Raleigh, the first in North Carolina – in some of the places hit hardest by the recession and lingering mortgage troubles.
Seven new sites are opening in California and three in the Detroit area, among other cities. The centers allow customers to work face to face with loan professionals, who counsel homeowners, help them through the loan modification process and, in some cases, make on-site decisions about customers’ mortgages.
It seems consumers are both wary of and confused by overdraft protection programs.
Last year, the Federal Reserve required banks and credit unions to obtain a customer's permission before enrolling them in an overdraft protection program, which charges an average fee of $35 for overdrawing a bank account.
A new survey of consumers from the Center for Responsible Lending released today showed that only 33 percent of consumers were opting in now that they have an option. The research also showed that people who did opt in often did so for reasons that were not legitimate, including:
The full report is available online here.
