Posts Tagged bank of america

Wells Fargo Layoffs hit Uptown Charlotte

Posted by Lisa in Charlotte Businesses on May 6th, 2009

Wells Fargo announced yesterday that they will be laying off 548  employees in uptown Charlotte as they continue to integrate with Wachovia.  The investment banking division will be hit the hardest which is no real surprise.  Wells also indicated that there would be more layoffs after this round as other business segments begin to integrate over the next 2 to 3 years.  The 548 seems to pale in comparison to the 2,900 jobs lost in the investment banking and mortgage divisions in both Bofa and Wachovia this past February.

What does this all mean?  Well if you remember it was the influx of all the investment bankers from the North that really put this town on the map and really got our real estate market in gear.   Where they will go…who knows.  I am sure some will stay and wait it out and some will head home.  As for the Charlotte real estate market…I think it will suffer from this loss.  The big players, the big money helped the Charlotte economy and real estate.  I really hope this economy turns around fast and the Wells and Bofa’s of the world start firing it up again.   Charlotte…we need it!

Ciao Bella

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Charlotte’s own Bank of America Posts Earnings

Posted by Lisa in Charlotte Businesses on April 20th, 2009

Charlotte based Bank of America posted better than expected earnings for the first quarter of 2009 earning 44 cents per share as compared to 23 cents per share a year ago.  This well exceeded the analysts forecast of 4 cents share. 

That was the good news….the bad news was that the bank posted a loss of $1.8 billion on card services after posting a gain last year.  CEO Ken Lewis indicated that “credit is bad and we believe credit is going to get worse before it will eventually stabilize and improve….whether that turn is later this year or in the first half of 2010, I’m not going to hazard a guess”.

Why do I write about this other than my love for the stock market?  Ken Lewis’ comments about the deterioration of the credit markets gives us great insight as to how the economy may very well continue to struggle and even get worse in the near term.   

Why is that important other than for the obvious reasons?  Unfortunately the Charlotte real estate market is inexorably intertwined with the economy and as such we more than likely will see continued downward pressure on our markets.  If people are not making their credit card payments I am fairly confident they are struggling with mortgage payments.  Struggling with mortgage payments means a higher probability of defaults and foreclosures.  More foreclosures mean more downward pressure on home prices in Charlotte. 

I remain cautiously optimistic the economy can stabilize by years end and we can begin to see the bottoming of the Charlotte real estate market.  Until then stay tuned….

Ciao Bella….

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