PNC's acquisition of 5,200,000,000 U.S. dollars for the completion of the acquisition of the bank began

PNC Financial Group announced on October 24 to 5,200,000,000 U.S. dollars acquisition of the Group of National City. That the market, the deal means that U.S. Treasury Secretary Paulson advocated by the local bank merger plan has made substantial progress, and a wave of mergers and acquisitions of small and medium banks are likely to kick off on this.
PNC Group on October 24 announced the completion of the deal, which is the company in less than two years in a row fourth acquisition, currently, PNC Group of the United States has become the fifth-largest deposits of the bank. As the Federal Reserve 125,000,000,000 U.S. dollars capital injection plan, PNC from the Group of the U.S. government was 7,700,000,000 U.S. dollars capital injection, which the company completed the acquisition provides an important guarantee of funds. YCMNet Advisors Chairman Michael Yoshikami said: "PNC's acquisition, perhaps for a series of mergers of this type began.
At present, the U.S. Treasury to the United States has provided a total of nine major banks 125,000,000,000 U.S. dollars of financing, Paulson said the bank can use the funds to complete within the trade deal in order to achieve stability in financial markets. According to sources, the U.S. government will expand the scope of the capital injection, the U.S. insurance industry in the near future will also be able to get capital into the U.S. Treasury Department. As early as a few months ago, PNC has already begun on planning for National City's acquisition plan, PNC Group on October 24, said in a statement from the U.S. Treasury makes funding of the deal was a powerful guarantee funds, So as to acquire a wholly-owned company has provided a solid foundation. In addition, convertible transactions enabled PNC to complete the acquisition of the Group be able to retain some of the cash used to enhance the level of its capital adequacy ratio, from the U.S. government access to billions of dollars in capital injection after, PNC's capital adequacy ratio level from Sept. 30, when the 8.2 percent rise further.
That the market, PNC's acquisition will facilitate the expansion of the Group's business in the U.S. Midwest. Through the deal, PNC will be added in 13 U.S. states and Washington, a total of 2,500 branch network. Hiscock & Barclay law firm partner Roger Cominsky, said: "Now, speed is everything, and each bank has its own objectives, today is tomorrow's competitors or acquisition targets." PNC Group is expected, National City's loan portfolio Because the loan will be times of crisis suffered a total of 20,000,000,000 U.S. dollars of losses, while the company also expects the merger at a total cost of 2,300,000,000 U.S. dollars, but the merged bank will reduce the expenditure of 1,200,000,000 U.S. dollars.
According to "The Wall Street Journal" reported on October 24, including a total of Capital One Financial Group and SunTrust Bank, including 22 small and medium-sized banks from the U.S. Treasury to obtain funds. At present, the two banks, spokesman Steven Thorpe and Barry Koling not comment on the matter. Barry Koling had said earlier this week that the current economic environment for SunTrust Bank as well as operation of the bank is an excellent opportunity, but he has not made it clear that the company will participate in the U.S. Treasury Department's plan to inject. In addition, Alabama's largest bank Regions Financial Group and Tennessee's largest bank First Horizon National Group, said the United States from the Ministry of Finance to obtain funds, the injection degrees were 3,500,000,000 U.S. dollars, and 866,000,000 U.S. dollars. Renaissance Financial Group analyst Douglas Ciocca, said: "The U.S. government obtained the necessary financing to complete the merger and other transactions, the current situation is a sensible way to operate. This is what we support, and it helps the whole To improve the living conditions of the industry.
In addition, just completed in the near future to change the bank holding company of Goldman Sachs Group and Morgan Stanley Bank will be able to participate in the financing of the U.S. government in order to secure a stable source of funding. Goldman Sachs spokesman Michael DuVally last week, said: "Goldman Sachs bank business through growth and mergers and acquisitions, and other ways to expand the company's deposit-taking business." In addition, Morgan Stanley, spokesman for the U.S. government does not plan to inject the comment. However, CEO John Mack last week to accept an interview with CNBC television said that the company will focus on capital management and financial advisory business expansion.
In addition, the current financial crisis in the United States has not been much impact on the Canadian banking industry by the U.S. banking industry is likely to trouble the opportunity to expand its U.S. business. At present, the Royal Bank of Canada, Toronto-Dominion Bank and Bank of Montreal has begun operating in the U.S. banking business. In the past two years, the Royal Bank of Canada has been the use of 15.7 billion dollars for U.S. business expansion. In March of this year, Toronto-Dominion Bank 7,200,000,000 U.S. dollars to the price of the acquisition of Cherry Hill, New Jersey banks, in one fell swoop in order to make the company's U.S. business to achieve double the amount. Edmund Clark, CEO of the company in June this year, said that if opportunities arise, the company will launch the U.S. banking acquisitions.