Opposition to Hibernia Bank-Capital One Merger Mounts
BizNewOrleans.com has reported that
Inner City Press/Fair Finance Watch (ICP), a community advocacy group based out of The Bronx, NY has already filed a formal complaint with the Federal Reserve Board in Washington, D.C. and the Federal Reserve Bank of Richmond. In the complaint, Executive Director of ICP, Matthew Lee, mentions the "lending disparities and the two banks' enabling of high-cost payday lenders, pawnshops, rent-to-own stores and other predatory fringe financial institutions".
In its complaint, ICP also mentions the suit filed against Capital One for false advertising by the State of Minnesota District Attorney as well as the above the norm rates of Hibernia denying home loans and other credit to blacks and other low-income applicates. Hibernia is also mentioned as providing loans to payday loan shops and rent-to-own shops.
Locally, the Chief Executive Officer of Capital One, Richard Fairbank, has been holding meetings with Hibernia employees promising that operations at the bank will stay the same and that layoffs will be minimal. Because Capital One is not a bank, there will not be much overlap in employees between the two businesses and the banking operations will remain here in Louisiana.
Although the banking operations will remain here in New Orleans, the Hibernia name will disappear once the deal is finalized sometime in the third quarter.
Times-Picayune ArticleGoogle Search on the MergerBayou Buzz CommentaryBe good to yourself,
Westley Annis
westley@da-parish.com
=============================================================
Got Tech Questions? We wrote the book!
AnswerSquadFeel free to forward this to anyone you think is interested.
Want to get your own copy? Visit our web site at
http://www.da-parish.com to sign up or send an email to
daparish-subscribe@yahoogroups.com
posted by Westley at 3/11/2005 10:28:00 PM
Teachers Union True to Form
The Louisiana Federation of Teachers, issued a statement that they would fight the passage of Senate Bill 7, filed by Senator Walter Boasso (R-St. Bernard), that would create a super board to oversee the state teachers retirement system and the state employees' retirement system.
Highly critized for overspending and numerous ethical failings, the teachers retirement system is a little fiefdom and the lords have called for the raising of the draw bridge.
The board of the Teachers' Retirement System of Louisiana denounced the bill almost immediately after it was filed and the LFT doing the same just a few days later. The governing members of both the retirement system and the LFT are only looking out for themselves and not the actual teachers they are suppose to be representing, much less the taxpayers of Louisiana.
With current projections the retirement system will not have the funds to provide for the benefits they have promised to teachers within 15 years. And, as is all too typical of government agencies, they will be looking to the state taxpayers to bail them out of their own mismanagement.
I do have to give credit to the board of the Louisiana State Employees Retirement System. Although they have not come right out in favor of the bill, they have at least reserved judgement until they have had an opportunity to study the bill and assess how the bill will effect their current and future retirees.
I believe one of the problems with the boards of the teachers retirement system and the LFT is they are treating this bill as if it was filed by a career politician. Sen. Boasso is only in the second year of being a Senator with no prior political experience. He is doing what he believes to be right not only for the teachers, but also for the residents of Louisiana. What many may fail to realize is that any changes to the teachers retirement system will directly effect members of Sen. Boasso's immediately family who are current and retired teachers. He is not going to do anything that would harm their retirement benefits.
I urge everyone to call or write their State Senator in favor of Senate Bill 7. Talk to any teachers you know and make sure they know what is being done in their name by the LFT and the retirement board.
You can read more about the LFT's statement from the
Times-Picayune.
You can download the bill from the Lousiana Senate
web site.
Be good to yourself,
Westley Annis
westley@da-parish.com
=============================================================
Got Tech Questions? We wrote the book!
AnswerSquadFeel free to forward this to anyone you think is interested.
Want to get your own copy? Visit our web site at
http://www.da-parish.com to sign up or send an email to
daparish-subscribe@yahoogroups.com
posted by Westley at 3/10/2005 11:25:00 AM
Ok, maybe I'm being paranoid, but New Orleans, and Louisiana, has lost another home grown company. This time it is Hibernia National Bank which just announced it is being purchased by Capital One Bank, the credit card company.
In a deal that gives Hibernia Bank stockholders a 24% premium over the closing price from March 4, Capital One becomes the largest lender in Louisiana and gives the company 314 branches spread between Texas and Louisiana. Capital One currently has no branches anywhere within the US doing all of it's marketing and business via TV ad's, mass mailings, and the Internet.
With two accounts at Hibernia I'm going to be watching closely to see what changes Capital One makes to the terms of my accounts. I recently switched my accounts to Hibernia since I wanted a local bank and my former bank, Regions Bank just wasn't giving me the incentives to stay with them.
This
link will give you a Google search of the latest news stories regarding the merger.
Be good to yourself,
Westley Annis
westley@da-parish.com
=============================================================
Got Tech Questions? We wrote the book!
AnswerSquadFeel free to forward this to anyone you think is interested.
Want to get your own copy? Visit our web site at
http://www.da-parish.com to sign up or send an email to
daparish-subscribe@yahoogroups.com
posted by Westley at 3/07/2005 12:45:00 AM
