From Wall Street to Tryon Street: The impact of the financial meltdown in the South
In the last few weeks, we've heard a lot about the impact of the finance industry's meltdown on Wall Street. But what about Tryon Street? That's the main avenue running through Charlotte, North Carolina that is headquarters to a vast share of the country's banking might.
A little history. Over the last decade, Charlotte has emerged as a leading center for global finance, overtaking San Francisco to become the second-biggest banking center in the U.S.:
More banking resources ($2 trillion) are headquartered in Charlotte than in all but one other U.S. city. Four of the nation's top 15 banks operate in Charlotte. Bank of America and Wachovia, are both headquartered in Charlotte. Their combined deposits total nearly 1 trillion dollars and rank first and fourth nationally in total deposits.
The Charlotte bank hasn't disclosed the amount, but analysts are expecting a big number if it's to achieve its goal of shaving $7 billion in annual expenses, or 10 percent of combined costs, by 2012. The cuts could resonate from Charlotte to Boston to New York.Earlier this year, Wachovia announced it was slashing 11,000 jobs in the Charlotte area after the bank posted a 2nd-quarter loss of $8.9 billion.
At the high end, Aite Group analyst Alois Pirker said in a report last week that the bank may eliminate up to 27,000 jobs, roughly 10 percent of the combined work force of nearly 270,000 employees.