Has anyone else been struck by the flurry of new construction of bank branches these days?
Is it just us, or is it happening all over? We must have 8 new bank branches being built right now, all within a two mile drive. It is pretty much the only new business construction for miles.
What are they thinking? I am guessing everybody here pretty much just puts monthly expenses in the bank, and keeps the bulk of your savings in mutual funds, brokerage accounts and the like. Maybe it's all about originating mortgages. But don't most people use a mortgage broker these days? Maybe the spread/float on a month's worth of your expenses sitting in a checking account is enough to warrant all these buildings?
My wall street friends say the banks are trying to build up branch networks so a foreign bank will acquire them in a few years as they try to move into the US market through acquisitions. (Consequence of the deficit, I guess....). Still it seems like the industry is headed for a bloodbath, in which case why would foreigners want in?
As if this weren't enough probs for the banks, last I heard Credit Unions are taking the gloves off and becoming tax-advantaged competitors to banks in all their traditional lines.
I just can't figure it out. Anybody know what is going on?
Is it just us, or is it happening all over? We must have 8 new bank branches being built right now, all within a two mile drive. It is pretty much the only new business construction for miles.
What are they thinking? I am guessing everybody here pretty much just puts monthly expenses in the bank, and keeps the bulk of your savings in mutual funds, brokerage accounts and the like. Maybe it's all about originating mortgages. But don't most people use a mortgage broker these days? Maybe the spread/float on a month's worth of your expenses sitting in a checking account is enough to warrant all these buildings?
My wall street friends say the banks are trying to build up branch networks so a foreign bank will acquire them in a few years as they try to move into the US market through acquisitions. (Consequence of the deficit, I guess....). Still it seems like the industry is headed for a bloodbath, in which case why would foreigners want in?
As if this weren't enough probs for the banks, last I heard Credit Unions are taking the gloves off and becoming tax-advantaged competitors to banks in all their traditional lines.
I just can't figure it out. Anybody know what is going on?